Managerial Accounting Part 4 Individual Analysis
To a large extent, the financial statements of both companies indicate that there has been sustained increase in both income and shareholders equity. However, Zoom registered greater revenue growth than Microsoft within the two years under consideration, i.e. between the years 2019 and 2020. More specifically, while Zoom had an 88.3% increase in revenue within the said period, Microsoft registered a 13.6% increase in the same. There was also significant growth in total asset value within the said period in the case of Zoom. While the company had total assets of $1.2 billion in the year 2019, the total asset figure for the year 2020 has been captured as $5.2 billion. This essentially represents a 310% increase in asset value over the two years under consideration. Microsofts total assets increased from $286 billion to $301 billion. It is clear from the financial statements of both companies that Microsoft also has more assets in its However, being a manufacturing entity, a huge chunk of its asset category happens to be inventory. In seeking to determine which company happens to be in better financial health, there would also be need to take into consideration their long-term solvency. Financial leverage ratios, as Franklin, Graybeal, and Cooper (2019) observe, could come in handy in this endeavor. One such ratio would be the debt ratio. The said ratio is computed by dividing the total debt figure with the total assets figure. In the case of Microsoft, we have a total debt ratio of 0.19. On the other hand, in the case of Zoom, we have a debt ratio of 0.07. This is an indication that both companies have more assets than debt. As Sittle and Wearing (2008) point out, a debt ratio less than 100% indicates that a company has more assets than debt. (p. 311). However, the lower ratio in the case of Zoom demonstrates that equity funds a…
References
Franklin, M., Graybeal, P. & Cooper, D. (2019). Principles of Accounting. 12th Media Services.
Sittle, J. & Wearing, R. (2008). Financial Accounting. SAGE.
Managerial Term Managerial Accounting FINAL EXAMINATION Please complete the following by typing your answer letter next to "ANS" (example "ANS: c) and return to your Instructor via Blackboard by midnight, August 1, 2012: A (n) ____ is a review to determine whether the policies and procedures specified by top management have been implemented. A) management audit B) internal audit C) internal control D) internal accounting control 2) Variances A) are quantitative expressions of plans of action B) ignore areas that are
Managerial Accounting Managerial accountants are charged with all financial matters that do not pertain to the financial accounting statements. Within their company, they ensure that the company has good financial security, they perform analysis on costs and revenues, they perform budgeting, handle taxes, and their work is frequently used in strategic planning, whereby they provide the financial analysis to management to help make better decisions (No author, 2012). Some of the
Managerial Accounting Accounting Managerial accounting is different from financial accounting because it is used primarily by companies and organization to generate weekly, daily and monthly reports to help them forecast future financial events (Birnberg, 1992). The profession of managerial accounting looks at the many ways managers can help facilitate increased revenues over defined times, and the future in general. It is not concerned with investments as much as it is concerned with
Microsoft Access Computing technology has greatly aided human technology and has presented new and easier ways for goals and objectives to be accomplished by its users. Technology works best when it is mostly aligned with the intent and purposes of its wielders and it is important to understand and know how such applications work and operate in order to get the most out of these tools. The purpose of this essay is
Microsoft DuPont DuPont Analysis of Microsoft DuPont Analysis Overview The DuPont Analysis is a type of analysis that provides a more detailed look at a company's Return on Equity (ROE) by breaking it into three main components. The three components are profit margin, asset turnover and a leverage factor. By separating the ROE into these smaller categories, investors can quickly identify how effectively or efficiently a company is using their resources. If any
Microsoft Monopoly Why was Microsoft investigated for antitrust behavior? In the eyes of some legal analysts, Microsoft was investigated and taken to court over antitrust allegations because of the belief that it would not live up to its own word about what it intended (McKenzie and Shughart, 1998). There was little doubt about the fact that by the mid- to late-1990s Microsoft had virtual control over the operating system (Windows) that it
Our semester plans gives you unlimited, unrestricted access to our entire library of resources —writing tools, guides, example essays, tutorials, class notes, and more.
Get Started Now