RATIO ANALYSIS Meaning of Ratio:- A ratio is simple arithmetical expression of the relationship of one number to another. It may be defined as the indicated quotient of two mathematical expressions. According to Accountant’s Handbook by Wixon‚ Kell and Bedford‚ “a ratio is an expression of the quantitative relationship between two numbers”. Ratio Analysis:Ratio analysis is the process of determining and interpreting numerical relationship based on financial statements. It is the technique of
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1. The South African Legal System Law is a social science. South African Law is not codified: recorded in one comprehensive piece of legislation. Origin: Indigenous legal systems applied at the southernmost tip of Africa before 1652. Jan van Riebeeck arrives in Cape Town in 1652 and the adoption of Roman-Dutch law as a legal system to the Cape. 1.1 A SHORT HISTORY OF THE LAW Unlike most European continental legal systems‚ SA law is not codified: It is drawn from various authoritative sources Such
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Main Body 4 Profitability ratios 4 Gross profit ratio 5 Net profit ratio 5 Return on Capital Employed 5 Liquidity ratios 5 Current ratio 6 Acid Test ratio 6 Working Capital Management Ratios 6 Stock Turnover Days 7 Debtor Collection Days 7 Creditor Payment Period 7 Comparison of the Financial Ratios 7 Conclusions and recommendations 9 References: 10 Introduction The main purpose of this report is to analyse importance of different types of financial performances and
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net Definition of Working Capital Stocks Current Assets Less Debtors Cash Investments Trade Creditors Current Liabilities Taxation Dividends Shortterm Loans tutor2u™ www.tutor2u.net Calculating Working Capital Example Stocks Trade Debtors Current Assets Cash Prepayments Less £250‚000 £500‚000 £900‚000 £125‚000 £25‚000 £250‚000 Working Capital = Trade Creditors £350‚000 £100‚000 Current Liabilities Taxation Dividends Shortterm Loans
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Finally‚ lower rates redistribute income from creditors to debtors‚ who will presumably spend the windfall. Today’s critics argue that this reasoning no longer applies. Business and households can’t or don’t want to borrow‚ while the retired and corporate pension sponsors must slash spending to cope with lost interest income. Are the critics right? Start with redistributive effects. These depend on who are the creditors and who are the debtors. For a net debtor nation like America‚ lower rates raise national
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Assets Rs. Equity Share Capital 6‚00‚000 Goodwill 1‚00‚000 7% Debentures 3‚50‚000 Land and Building 2‚30‚000 Long-term Debts 2‚00‚000 Plant and Machinery 3‚00‚000 Bank Overdraft 75‚000 Trade Investments 3‚00‚000 Sundry Creditors 60‚000 Sundry Debtors 1‚50‚000 Bills Payable 30‚000
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Financial strategy & results over the last three years of Carluccio’s plc In the Profitability area In this company the sales has a heath development and risen about 10 %‚ but the profit of this company hasn’t risen and have a short decline. Gross Profit Margins is a financial ratio which for evaluating a company’s core activities of profits. The gross profit Margins has remained relatively static over the three year period‚ but a little decline in 2007 Gross profit margins is 20
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There are many laws in the world today that some may find are neither rational nor fair for all the parties involved in the situation. I have chosen two laws that I do not think are logical‚ these two are apparent authority and executory process. The first law I will be discussing is an agency this is the right one person has to execute business on behalf of another person or corporation. There are three important parties involved in an agency relationship; the agent (this is who can enter a contract
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Proprietor Close Corporation Company Partnership Non – profit Organizations 2 Users of Financial Information: Financial information is required / used for analysis by: 1. INVESTORS: The Shareholders with a Financial Interest in the business 2. CREDITORS: The lenders of money‚ merchandise and services also have a Financial Interest in the business 3. EMPLOYEES: Regarding job security and wage negotiations and predictions for future employment 4. GOVERNMENT: Regarding taxes‚ and also for statistical
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purchases and therefore an account shows net increase or decrease in the balance of similar entries / items (in the aforementioned example there was an increase in purchases balance) Example of accounts is payable or creditor account‚ purchases account‚ sales accounts‚ receivable or debtor account‚ cash account‚ bank account‚ machinery account‚ building account‚ vehicle account etc Each account is divided into Debit and Credit portions. Debit is the left hand side of an account and credit is the right
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