Financial Analysis Task #5

As money is spent statements are updated to reflect the accounts affected by the spending. Managers use these financial statements, such as an income statement or balance sheet, to check the progress of plans and programs. Management uses the information provided by financial statements to monitor financial resources and activities. The income statement shows the results of the organization's operations over a specific period, such as revenues, expenses, and profit or loss. The balance sheet shows what the organization is worth (assets) at a particular point and the extent to which those assets were financed through debt (liabilities) or owner's investment (equity) (Bank of America, 2007).

This four-credit course is for students who major in finance. By the end of this course,

For an individual who pays personal income taxes at a rate of 30 percent, which of the following statements is most correct?

At the end all the risk are finance related, because the liability’s cost money and this will have an effect in the company’s earnings, so what is important is not only to try to avoid such events but also to be prepare in case they happen and have a plan, is like the saying “Hope for the best but be prepare for the worst”.

The company that I chose to analyze is Tootsie Roll. Throughout my life I have always had somewhat of a sweet tooth and have been very intrigued in the process of business. Now I have the opportunity to look further into such a great company such as Tootsie Roll and really find out how the business is run and what type of work is invested in such a well known business.

Commutronics had not accumulated enough profits and had no sufficient capital reserves. The company’s registered capital was therefore very low. The withholding tax rate of

Identify the potential risks which affect the company and manage these risks within its risk appetite;

However, two known authors in this field of study believe that companies with low business risk obtains factors of production at a lower cost which may also pave to the ability of the firm to operate more efficiently (Amit & Wernerfet, 1990). Therefore, many stockholders faced a high of uncertainty; this is because some companies do not have the financial strengths to cover its debts that even may result to bankruptcy.

The company currently faces serious financial challenges. It was struggling with declining sales and increasing costs. Since 2004, revenues had fallen by more than 40% while costs especially for employees health insurance, maintenance, and utilities climbed. Credits and loans had been borrowed to

Business risks faced by a company could lead to a material misstatement in financial statement and give rise to audit risk. In order to identify the business risks Zambo has, it is important to explore its financial risk, operational risk, and compliance risk.

Interest Expense Rate is continuously increasing from 1992 to onward. It shows that company is paying high financial charges over short term and long term borrowings.

-Brokerage firms manage and facilitate the purchase of stocks, bonds, and other types of investments.

The three most important points in the Group (Consolidated) Cash Flow Statement are as follows:

1. Stocks offer an expected rate of return of 18%, with a standard deviation of 22%. Gold offers an expected return of 10% with a standard deviation of 30%.

Usually the current assets are maintained at twice the level of current liabilities i.e. The current ratio is 2:1 But the quality of current assets is important. The current assets should be easily marketable. I.e.the should be liquid. If the Liquidity is also harmful. It may be due to mis management of current assets.