review

Between years 6 and 7 CBI’s Accounts Payable and Notes Payable increased by 192% for a change of $128,820. This indicates a weakness as the company has more than doubled their debts between these two years. Significantly increasing debt can impact shareholder confidence, which could impact the market value of CBI stock.

during year 12 and year 13. However, in year 13 and year 14 total current assets fell

In order to ascertain how well a company is performing, analyses must be done in regard to the business being stable, including its’ ability to pay debts, how much cash or other liquid assets are available, and whether the organization is viable enough to continue operations. These analyses typically look at income statements, balance sheets, and statements of cash flow, where current and past performance will be studied with the goal of predicting how the company will perform in the future.

Income statements and balance sheets were reviewed to summarize the following key points that could

The operating review of the company lists down the operating losses that the company faced over year and compared it with the past years operating performance. The results suggest that the sales revenue for the company grew over the year; however, due to higher increase in the cost of sales the company had to face a higher gross loss than the past year (Refer to appendix A). Moreover, the company discontinued its noncore retailing operations for the year in an attempt to reduce the losses sustained in the past year, but the result was not positive, and the company had to face higher loss from its core business in 2010 then both the operations combined in the past year (JJB Sports PLC, 2011).

• Net profit margin has been negative and no major patterns over the 9 year period on net profit since the trend of the industry is based mostly on economic factors, and whether or not they secure contracts. Due to high percentage of COGS they are only left with a net profit of $980 or

Some of the significant changes I found on the income sheet were revenue which decreased by 8 million dollars in 2015 compared to 2014. SG&A expenses increased by .9% for the year. How-ever gross profit decreased by .3% in 2015. Also net income for the year decreased by -2.5% per-cent.

Although there are no major changes to the operations of Indigo, it is evident that as a result of having a negative net income indicates problems with the company operations. It becomes more worrying as Indigo’s revenue is declining as a result being unable to increase the amount of profit. They are still unable to cut expenses down enough to maintain a positive net income. Ratios

Assess the degree to which the firm’s accounting reflects the underlying business reality. Identify accounting distortions and evaluate their impact on profits and the sustainability of profits.

In the year 2007, there is a drop in financial performance within the company. Earnings have dropped

1 In Ravi Suria’s analysis, “we believe that the current cash balances will last the company through the first quarter of 2001.” According to Exhibit 12c the cash flow statement, in contrast, the cash balance could last for the first quarter of 2001, when it suffered from 407 losses in operating activities, though positive in investing and

A vertical and horizontal analysis of each company's balance sheet and income statement in this particular case will be enlightening. A vertical analysis will for instance shed some light on how revenue is being used. In this case, each component of the companies' financial statements will be converted into a percentage of a key component of either the balance sheet or the income statement. A special common size balance sheet and income statement will be utilized to ease comparison. The

Abstract : Analysis of financial statement of a company is an important because it is useful to obtain Information

The financial statement analysis generally involves Common Size Analysis (a company’s financial statement that displays all items as percentages of a common base figure), Ratio Analysis (liquidity, turnover, profitability, etc.), Trend Analysis (the practice of collecting information and attempting to spot a pattern, or trend, in the information.) and Industry Comparative Analysis. This permits the valuation analyst to compare the subject company to other businesses in the same or similar industry, and to discover trends affecting

The return on shareholders’ fund, capital employed, total assets all have gone down during this period. The ability of the company to pay its short term debt hasn’t varied much, but the administrative expenses have gone up by a very large amount.