specific technique used by the company to effectively managing its cash. Q.2 How Important is Debtors Management to your Company? (a) Very Important (b) Important (c) Not Very Important Answer: The debtors management is very important to the company since the company works on a low margin and high volume strategy. The average margin on each transaction is nearly about 5% and if the company has debtors outstanding for a long period that means the opportunity
Premium Debt Finance Financial audit
expenses during the operating cycle. The term "working" here implies continuity of production and distribution of want removing goods and services required by the society. Working capital is necessary to finance current assets which include inventories‚ debtors‚ marketable securities‚ bank‚ cash‚ short term loans and advances‚ payment of advance tax and so on. Fundamentally‚ there are two concepts of working capital and they are (i) Gross Working Capital and (ii) Net Working Capital. Gross Working Capital
Premium Working capital Inventory Balance sheet
Fast-moving consumer goods (FMCG) or consumer packaged goods (CPG) are products that are sold quickly and at relatively low cost. The term FMCGs refers to those retail goods that are generally replaced or fully used up over a short period of days‚ weeks‚ or months‚ and within one year. This contrasts with durable goods or major appliances such as kitchen appliances‚ which are generally replaced over a period of several years. FMCG have a short shelf life‚ either as a result of high consumer demand
Premium Financial ratios Financial ratio
Lidia Kujawska HND Accounting Year 2 Graded Unit 2 Development Stage Moorland Brewery plans to expand its production to new lager called Puma. They found buyer for it and right now they need to develop stage of producing new beer. The first calculation must start from cost statement for the new product. Primarily there is need to find out how much ingredients brewery will need to produce 2 litre of lager‚ this amount give company a clue how much they will pay for one mashing of beer.
Premium Costs Net present value Budget
ratio 6 1.6 Acid test ratio 7 1.7 Interest cover ratio 7 1.8 Debt/total capital employed 8 1.9 Debt/equity 8 1.10 Stock turnover 9 1.11 Debtor collection period 10 1.12 Creditor repayment period 10 1.13 Working capital cycle 11 1.14 Fixed asset turnover 11 1.15 Total asset turnover 12 1.16 Working capital turnover 12 1.17 Return
Premium Financial ratios Financial ratio
| 2009 – 2010 | | Masters in Business Administration |By- Tesar Singh Chauhan [DOMINO’s PIZZA UK & IRL FINANCIAL PERFORMANCE ANALYSIS] | Submitted as a part of module assessment for Accounting and Control | CONTENTS: Page Number 1. INTRODUCTION 2 1.1 DOMINO’s at LONDON STOCK EXCHANGE And Trading Information 2 2. FINANCIAL RATIO ANALYSIS ON DOMINO’s PIZZA UK & IRL PLC’s PERFORMANCE 3 3.1 PROFITABILITY RATIOS 3-4 3.2 LIQUIDITY
Premium Financial ratio Balance sheet Generally Accepted Accounting Principles
Common Size Statements are used to compare financial statements of different-size companies‚ or of the same company over different periods. Common-size analysis - (also called vertical analysis) expresses each line item on a single year’s financial statement as a percent. The base amount for the balance sheet is usually total assets (which is the same number as total liabilities plus stockholders’ equity)‚ and for the income statement it is usually net sales or revenues. By comparing two or more
Premium Balance sheet Generally Accepted Accounting Principles Asset
of its net worth ( Share capital plus reserves ) while reserves amounted to 40 % of share capital Prepare the balance sheet of the company as on 30.06.2003 showing all calculation Problem 2 Calculate Creditors Turnover Ratios from the following Data Particulars Rs Opening Creditors 25000 Purchase returns 5000 Cash paid to Crs 1‚30‚000 Closing Crs 15‚000 Problem 3 Calculate the following Ratios Current Assets Rs 5‚00‚000‚ Opening Stock – Rs 50‚000‚ Cl Stock Rs 1‚50‚000‚ Cost
Premium Inventory Generally Accepted Accounting Principles Balance sheet
Reconstitution of partnership ADMISSION OF A PARTNER SOLUTIONS 1. Since a new partner gets his share of profit from old partners‚ he must compensate the old partners for the share sacrificed by them. The amount of compensation given by the new partner is known as goodwill. 2. Assets and liabilities are revalued because the entire profit and loss due to their revaluation is divided amongst the old partners in their old profits sharing ratio. The new partner should not share such profit or loss because
Premium Balance sheet Asset
Section 1 – Sources of Finance There are 4 main types of business ownership: • Sole trader • Partnership • Private limited company (Ltd) • Public limited company (Plc) Each of these types of business needs to raise finance for capital investment Sole Trader This is a business that is owned by one person. Sole Traders are responsible for raising all the finance to set up and run the business. Usually a sole trader would be for a small business/ (businesses with a flat
Premium Asset Balance sheet Debt