Ssc100 Research Success Assignment

968 Words4 Pages
Leon’s furniture is ranked number two hundred and ten on the globe and mail’s report on

business top 1000, earning a profit of $56,666. The focus of this report will be on the financial

position of Leon’s furniture. For any business, the financial position of the company will be

viewed by both internal and external users and stakeholders because it shows how well the

business is doing financially. The net income of the company will affect the financial position of

the business because based on the profit or loss incurred, it will define if the business is

successful or not. Moreover, shareholders will be interested in the financial statements since it

determines the earnings per share.

The first article is “Leon’s
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The asset

will decrease (if they borough money from banks, it will increase their liabilities and they must

pay for the interest) and also effect the asset-liability ratio, making the company owe more than

they own. In addition, the executive chairman of The Brick is anticipated to join Leon’s board of

directors (Knell). Like any other new coworkers that come to the company, they might encounter

arguments or disagreements. However, if both companies work together in a positive manner,

they may earn more net income combined. Hence, this will turn the negative into a positive

impact for both companies. “Leon’s corporate and franchise stores had combined sales of

C$879.6 million and The Brick had corporate and franchise sales of C1.54 billion” (Knell). This

shows that the sales volume of The Brick is actually greater than its new owner, Leon’s. This can

impact Leon’s in a positive way because the revenue from The Brick will be added onto their

own revenue since they are now a combined company. The most important thing to take into

consideration is that buying out The Brick, Leon’s will have one less competitor in the furniture

industry. All of the above will lead to increase in total revenue and net income for Leon’s


Since I am currently studying Accounting and Finance at Seneca College, I believe that

my future profession in accounting can help Leon’s keep track of their transactions and

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