Let It Snow Accounting Ratio Report
Letter of transmittal
James Cook University
Townsville, QLD 4810
09/05/2014
Dear owner of Let it Snow,
Find attached Let it Snow’s accounting report.
The preparation of this report was assigned on the 14th of April 2014.
The scope of the report is an analysis of accounting ratios
The limitations are the lack of previous financial years.
The concluding remarks specify that the profitability ratios are profitable and Let it Snow has potential to be invested in. The liquidity ratios show that Let it snow is capable of meeting its short term liabilities with appropriate liquidity requirements and allows creditors to provide funding. The solvency ratios show that Let it Snow can repay its long term debt and is able to support itself financially.
If you need further information do not hesitate to contact the writer.
Yours faithfully,
Jonathan Fourie
Table of Contents
Executive summary 4
Introduction 5
Income Statement 6
Balance Sheet 7
Profitability ratio 9
Liquidity ratio 10
Solvency ratio 11
Industry comparison 13
Conclusion 14
Recommendation 14
Reference list 15
Executive summary
This report is an accounting analysis of the profitability, liquidity and solvency ratios of the entity Let it Snow. The recommendations available to Let it Snow are gather data on the Snow industry for hiring and instructing, to generate insight of how Let it Snow compares to the industry. Let it Snow may wish to analysis its long term debt structure to allow for increased profit margins. Consideration for the terms of contracts with customers/suppliers and try and increase discounts for early payments, thus increase money flow. Let it snow has to spend $.70 for each dollar it makes. Cost analysis of operating expenses should evaluate if the lowest price expenses are being implemented. The report finds that Let it Snow should focus mainly on ways to decrease its cost expenses.
Background
Through the analysis of the Income and
James Cook University
Townsville, QLD 4810
09/05/2014
Dear owner of Let it Snow,
Find attached Let it Snow’s accounting report.
The preparation of this report was assigned on the 14th of April 2014.
The scope of the report is an analysis of accounting ratios
The limitations are the lack of previous financial years.
The concluding remarks specify that the profitability ratios are profitable and Let it Snow has potential to be invested in. The liquidity ratios show that Let it snow is capable of meeting its short term liabilities with appropriate liquidity requirements and allows creditors to provide funding. The solvency ratios show that Let it Snow can repay its long term debt and is able to support itself financially.
If you need further information do not hesitate to contact the writer.
Yours faithfully,
Jonathan Fourie
Table of Contents
Executive summary 4
Introduction 5
Income Statement 6
Balance Sheet 7
Profitability ratio 9
Liquidity ratio 10
Solvency ratio 11
Industry comparison 13
Conclusion 14
Recommendation 14
Reference list 15
Executive summary
This report is an accounting analysis of the profitability, liquidity and solvency ratios of the entity Let it Snow. The recommendations available to Let it Snow are gather data on the Snow industry for hiring and instructing, to generate insight of how Let it Snow compares to the industry. Let it Snow may wish to analysis its long term debt structure to allow for increased profit margins. Consideration for the terms of contracts with customers/suppliers and try and increase discounts for early payments, thus increase money flow. Let it snow has to spend $.70 for each dollar it makes. Cost analysis of operating expenses should evaluate if the lowest price expenses are being implemented. The report finds that Let it Snow should focus mainly on ways to decrease its cost expenses.
Background
Through the analysis of the Income and