TABLE OF CONTENTS INTRODUCTION 2 FINANCIAL RATIOS 4 PROFITABILITY RATIOS 5 LIQUIDITY RATIOS 7 ACTIVITY RATIOS 9 INVESTMENT RATIOS 11 OVERTRADING 13 FINANCIAL STATEMENTS 14 BALANCE SHEET 15 FORMATS OF FINANCIAL STATEMENTS 18 CONCLUSION 22 BIBLIOGRAPHY 23 INTRODUCTION In this report you will find useful information about GlaxoSmithKline plc (GSK). and AstraZeneca plc (AZN) and overview of these companies. My friend wants to buy shares and ask me for some advice
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collection period. Fall in liquidity ratios‚ rapid increase in revenues‚ increase in inventory in relation to revenue‚ uneven increase in receivables and increase in accounts payable period and decrease in profit margin are the symptoms of “Overtrading”. In line with the decrease in net profit‚ earning per share has also drastically reduced to Rs.3.22 (2010) from Rs.2.665 (2012) over preceding years. Page 3 of 16 This report finds the prospects of the company in its current position are
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M1- In this assignment I will be writing notes to accompany the cash flow forecast. I will be explaining to Sharma and Ryan why a business in general might experience cash flow problems‚ why this can cause difficulties and any potential dangers I can see specific to SIGNature’s cash flow forecast. What is a cash flow and the purpose of it? A cash flow is a measure o the money coming into the business and the money going out of the business on a regular basis. A cash flow forecast predicts in advance
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Name: Saliha D1: Business Accounting D1: You are required to justify actions a business might take when experiencing cash flow problems identified in Task 5 (M1). Cash flow shows the movement of cash in and out of the business in future. It is an estimate of the amount of money flow in and flow out of the business. There are some problems that are identified in the organisation of partnership. There are problem in cash flow forecast in the month of January‚ July and August and September
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Examination Information This is a three hour closed book written examination‚ worth 70% towards your final grade. The examination will contain 6 questions‚ covering computational and discursive aspects of the syllabus. You will be required to answer a compulsory question of 40 marks in section A and 3 questions from 5 optional questions in section B. Question in section B are worth 20 marks each. Note that a greater depth of knowledge than in the in-class test will be required to gain reasonable
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increased risk that the stock won’t be able to be sold. Low profits or losses; The business isn’t making enough money in profit and maybe making a loss‚ which could lead to the business running out of money and therefore needing to close down. Overtrading; This happens when a business expands far too quickly‚ which will start to put pressure on its short-term finance‚ such as company may choose to open to many chains before each chain starts to generate a profit. Over-Investment in capacity; This
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Task One Part A a) Sources of fund include individual benefits and other resources make a great resource of investment. They are ready in side and purchase costs are minimal‚ therefore there will not be any interest charged on a loan from the lender or discussing profits with traders. A major drawback includes the risk of losing the individual benefits if Emaar Qualities strikes a reduction. Another resource of fund includes loans from banks. Emaar Qualities may have to make use of resources such
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Reasons for cashlow problems : Overtrading/over expanding Short trade credit Long debtors period Over stocking Idle assets Outflows more than inflows(mismanagement of working capital) Uncontrolled expenses Decline in sales Solutions to cash flow problems Slow down expansion Prolong trade credit Shorten debtors period Get rid of stocks (JIT) Sell idle assets Improve the working capital cycle Control expenses Increase sales by promotion and advertising It seems
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involved in meeting orders and receiving money from sales‚ the greater the risk of cash flow turning negative. John Adams selling on credit may also struggle if customers fail to pay by the date agreed‚ or go out of business without paying all. Overtrading is also another cash flow problem he may face. Rapid expansion without securing sufficient finance can also lead to cash flow problems. The costs of materials and labour will be increasing and will usually need to be covered well in advance of payment
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POSC 335 Final Exam: A Case Study Following the financial crisis in 2008‚ the Dodd-Frank financial reform was passed in 2010 to help prevent giant banks from engaging in speculative trading activity. While speculative trading activity is not considered to be the cause of the financial collapse‚ many economists believe it was one of the contributing factors. While it is important for banks to support the economy by lending to consumers and businesses‚ they often become involved with proprietary
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