Accounting Equation Works
The financial position of a business is represented by the components of the accounting equation (Lerner, 1987). The accounting equation is assets = liabilities + equity. Assets are items what the business owns that have value and are used in the operation of the business. Liabilities are what the business owes to others, such as creditors. And, equity is the interest of the shareholders, or owners.

The balance sheet reflects the accounting equation by reporting assets, liabilities, and equity at a specific period in time (Accounting Equation, 2013). The components of the balance sheet are assets, liabilities, and equity, the same as the accounting equation. On the balance sheet, liabilities and equity added together and must equal the total assets. If it does not equal, there is an error in balancing somewhere in the accounts or in the calculations of the balance sheet.

The components of the accounting equation…...

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Bibliography

Accounting Equation. (2013). Retrieved from Accounting Coach:  https://www.accountingcoach.com/online-accounting-course/14Xpg01.html#basic-accounting-equation 

Lerner, J. & . (1987). Principles of Accounting I. New York, NY: McGraw-Hill Companies.

Financial managers and CEO's play important roles in ensuring that organizations meet their specific goals. The skill levels for both positions are high and require a great deal of patience and experience. The purpose of this discussion is to determine whether being a financial manager is the best preparation for later becoming a CEO.
ole of the Financial Manager

According to the Bureau of Labor, financial managers must have a bachelor's degree in a field such as business administration, accounting, economics or finance. Although, as the business world becomes more competitive, organizations are requiring financial managers to have Master's degrees and a great deal of experience before they can become financial managers. The Bureau also explains that financial managers are vital to the success of any organization and their jobs involve supervising the preparation of financial reports, direct investment activities, and implement cash management strategies. As computers are increasingly used to record…...

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References

Campbell, M.W., Kowalski, R.B. Healthcare Financial Management Association Apr 2000

Financial Managers. 2004. Bureau of Labor and Statistics.  http://www.bls.gov/oco/ocos010.htm

Financial Appraisal of yanair
yanair's Financial Appraisal

In this report we provide an elaborate financial appraisal of yanair for a naive investor with no financial expertise.

The key conclusions of this report are:

- yanair has a very strong as well as continuously expanding market position which is enabled by its expansion of its fleet by 40 new aircrafts to a total of 272 as well as the opening of new routes (328) and bases.

-One reason as to why yanair has achieved as well as maintained its very strong position is its dedication to quality service care and service provision. These approaches have ensured that the company has an exceptional financial performance as well as improved efficiencies.

The Strategic Issues that are facing yanair

The current increase in fuel prices by about 37% which the company attempted to offset by the instituting a 12% increase in average fare. The changes in the price of fuel as…...

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References

Paladin (2011).Paladin Labs 2010 Annual report

Research and Markets (2011). Paladin Labs Inc. (PLB) - Financial and Strategic SWOT Analysis Review

 http://www.marketresearch.com/GlobalData-v3648/Paladin-Labs-PLB-Financial-Strategic-6262568/ 

Ryanair (2011).Ryanair 2011 Annual report  http://www.ryanair.com/doc/investor/2011/Annual_Report_2011_Final.pdf

Financial Reports
Understanding Financial Reports

I am choosing to analyze pple Inc., a publicly held company since 1980. The homepage is at http://www.apple.com. I am interested in pple for many reasons, firstly because it is one of the most successful and largest companies in the entire world, and has reshaped not only the tech industry, but has reshaped the way that we conduct business, from the personal computer of the 1970s to the music revolution with iTunes and the iPod, to modern day smart phones and iPads that provide an enormous amount of information in the palms of our hands. I expect to benefit from the analysis of pple Inc. because the business has been documented extensively, and therefore I can retrieve expert opinions on pple's history and future from the most professional sources. lso, pple is the perfect example of a company that started from just a simple idea in a…...

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Apple's Return on Assets for last quarter was 29.70%, a change of plus two percent from 2011. Apple's Profit Margin was at 25.19% 2Q 2012, which is near the 2Q 2012 number of 25.58%. Apple's Asset Utilization Rate for 2Q 2012 was 1.066, which means Apple was gaining more than $1 for every $1 of Asset it owns, which is an extremely good position to be in. Apple's Asset Utilization Rate for 2Q 2011 was 1.103, even better than the 2012 rate. Apple's Competitive Financial Position was -55Million for 2Q 2012, however for 1Q 2012 it had positive 310 Million, suggesting that Apple decided to spend a lot of cash during the last quarter, which is not necessarily a bad thing, but is strange for Apple since they have had positive cash flow each quarter for the last 5 years. Apple is very unique in that they have very little debt. This means that Apple's Free Cash Flow is unusually high, remaining at 7.945 billion for 2Q 2012. Apple has more cash on hand than any company in the world, and therefore its Relative Cash Position is higher than all of its competitors. Apple has been using its cash for growth for several years in a row, with its Receipt and Use of Cash at -12.31 billion.

Google is Apple's primary competitor in the mobile market, which is both Apple and Google's largest sectors, despite the fact that Google's core service is search and Apple's is technology. Google's Return on Assets was 15.02% in 2Q 2012, less than Apple. Google's Profit Margin was at 22.80% for 2Q 2012, lower than Apple, but still an extremely high profit margin by anyone's standards. Google's Asset Utilization Rate is at 0.5564, much lower than Apples, which was over 1.0. Still, 0.55% does not mean that Google is necessarily doing worse than Apple, but it is using its resources less efficiently. Google's Cash Flow was at 639 million for 2Q 2012, a huge level, although it was even higher in 1Q 2012, at 1.23 billion.

Both Apple and Google have extremely successful businesses, and despite being competitors in the mobile sector, they still work together on some projects and have kept a good relationship. Apple is in a better position right now due to its excellent efficiency rates and enormous cash on hand. Google is not far behind, however, and still gains a tremendous amount of money from its search formula.

Financial Analysis of Bestwish Limited
Company Overview

Bestwish Limited produces extensive range of quality products such as gift dressing, greetings cards, and plush merchandise of more than 50,000 stocks. The production of different categories of products involve between 2 and 15 processes. The company produces standardized products and custom designed products ordered from customers on contract basis. However, Bestwish Limited is facing challenges to control the costs because of varying production process, reliance on indirect costs and large number of stock keeping units.

Bestwish Limited has just closed the 2010 fiscal year account and the company is finalizing the 2011 budget. Bestwish intends to analyze the 2010 financial statement to present the accurate picture of the company financial performances.

Objective of this report is to analyze 2010 financial statements to assess the viability of Bestwish Limited.

Task

Attn:

Audit Committee of the Board

Finance Director

Subject: Financial statement Analysis

Date: 27 January 2013.

This report verifies the 2010 financial statement of…...

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References

Drury, C. (2009). Management Accounting for Business, 4th Edition (Cengage Learning EMEA, ) ISBN 1408017717.

Harris, R. And Sollis, R. (2003).Applied Time Series Modelling and Forecasting (John Wiley and Sons) ISBN 0470844434

Glynn, J. Perrin, J. Murphy, M. And Abraham, A. (2003).Accounting for Managers, 3rd Edition.(Thomson Learning) ISBN 186152904X

The Times 100, (2012). Financial statements and reporting A Cadbury Schweppes case study. The Times 100 Business Case Studies.

Financial Comparison
Financial analysis is a tool that allows third parties to analyze corporate financial statements. One of the main reasons that the Securities and Exchange Commission requires that statements are compiled and presented in a consistent manner is to ensure that third parties will be able to use the statements to compare different companies. These comparisons can, among other things, help with investment decisions. This paper will compare PepsiCo and Coca-Cola Company, the two leading soft drink marketers in the world. PepsiCo is actually the larger of the two companies, because it is more diversified, with its snack food properties. These properties also alter the company's finances, creating certain points of difference between the two companies. This report will cover a number of different forms of financial analysis, arriving at a conclusion about which company has the stronger financial position.

PepsiCo

The first set of ratios to be studied are the liquidity…...

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Works Cited:

FTC. (2010). FTC puts conditions on PepsiCo's $7.8 acquisition of two largest bottlers and distributors. Federal Trade Commission. Retrieved May 19, 2012 from  http://www.ftc.gov/opa/2010/02/pepsi.shtm 

Leckey, A. (2010). Coca-Cola Co. outlook strong after big acquisition. Los Angeles Times. Retrieved May 19, 2012 from  http://articles.latimes.com/2010/oct/31/business/la-fi-leckey-20101031 

Loth, R. (2012). Financial ratio tutorial. Investopedia. Retrieved May 19, 2012 from  

Financial Analysis
Reitmans

Alimentation Couche-Tard

Sales

COGS

Gross Profit

Depreciation + Exp

Operating Profit

Investment Income

Interest

EBIT

Tax Exp

Net Income

Cash

AR

Inventory

Prepaid Exp

Current Assets

Investments

Capital Assets

Goodwill

Future Income Tax

LTA

Total Assets

Taxes payable

Current LT Debt

Current Liabilities

LT Debt

Other LT Liabilities

Total Liabilities

Equity

L + E

Reitmans was able to improve its profitability in 2005, compared with 2004. The company's gross profit improved to 13.55% from 9.99%; its operating profit improved to 9.7% from 5.98%; and its net profit improved to 7.33% from 4.7%. This shows that the improvement in the company's profitability is largely attributable to the improvement in the top line, with the cost of goods sold being a lower percentage of revenues in 2005 than 2004. hether this is a function of driving down costs with suppliers or increasing prices to consumers cannot be ascertained from the financial statements, but from the comments in the annual report. Reitmans achieved superior gross margins in a couple of ways. The most important was advanced purchases of U.S. dollar inventories when…...

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Works Cited:

Reitmans 2005 Annual Report. In possession of the author.

The horizontal analysis showed that FedEx's profits in 2009 were just 5% of their profits in 2007. Given that EBIT contributes to the T3 component of the Z-score, which is the most significant component by weighting, this would explain why the Z-score dropped so much. The other major contributor to the Z-score is the drop in the company's market cap. The market cap is deemed important in part because the market's view of company reflects the most known information at the time. The market has a strong ability to predict financial distress. A depressed stock price indicates that investors need a greater percentage return on the expected future cash flows from the company in order to invest -- an indicator that the market believes the firm's risk level has increased. The market cap contributes to the T4 component, which is the smallest component of the Z-score. However, the decline…...

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Works Cited:

2009 FedEx Annual Report. Retrieved February 4, 2010 from http://files.shareholder.com/downloads/FDX/791567587x0x312397/557bd7f3-8372-4afe-a664-1fdb82a488b0/FedEx2009AnnualReportl.pdf

Loth, R. (2010). Financial ratio tutorial. Investopedia. Retrieved February 4, 2010 from  http://www.investopedia.com/university/ratios/ 

Market cap and other financial information from MSN Moneycentral. Retrieved February 4, 2010 from  http://moneycentral.msn.com/companyreport?Symbol=U.S.%3aFDX 

Altman Z-Score calculator from CreditGuru.com. Retrieved February 4, 2010 from http://www.creditguru.com/cgi-bin/calculator/calcAltZ.pl

Overall, at&T is the more profitable of the two companies. That Verizon has the stronger gross margins and at&T the stronger net margins indicates that at&T does a better job of controlling its cost structure than does Verizon.

The Industry

The telecommunications industry is highly competitive in both the landline and wireless segments. By 2006, wireless spending had match wireline spending. hile this presents significant opportunities for telecommunications, much of that spending comes in the form of cannibalizing, as wireline revenues have been decreasing steady over the past decade, matching the steady increases in wireless spending.

There are four major wireless operators in the U.S. And over 170 regional players (Megna, 2009). Competition is based on coverage area (capital investment), price and customer service. Both firms can be considered industry leaders. As of 2007, at&T had a subscriber base of 65.7 million and wireless revenues of $10.9 billion. Verizon had a subscriber base…...

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Works Cited:

MSN Moneycentral Verizon. Retrieved October 24, 2009 from  http://moneycentral.msn.com/investor/invsub/results/statemnt.aspx?Symbol=VZ&lstStatement=Balance&stmtView=Ann 

MSN Moneycentral at&T. Retrieved October 24, 2009 from  http://moneycentral.msn.com/investor/invsub/results/statemnt.aspx?Symbol=T&lstStatement=Balance&stmtView=Ann 

Loth, R. (2009). Financial Ratios Tutorial. Investopedia. Retrieved October 24, 2009 from  http://www.investopedia.com/university/ratios/ 

Chen, B. (2009). Verizon iPhone? Don't hold your breath. Wired. Retrieved October 24, 2009 from  http://www.wired.com/gadgetlab/2009/10/verizon-iPhone/

By adding up the two figures one obtains the company's total net worth. The basic rule of a balance sheet is that the assets on one side have to add up to the same amount as the liabilities and the owners' equity combined, on the other side.
Investors need to know the contents of a balance sheet because important financial ratios may be calculated with the data therein. These ratios help at building a picture about the state of liquidity and growth potential of the company in question.

Another example of financial statement is the cash-flow statement, which reveals all sources and uses of a company's money during a specified period. The sources of cash include revenues, long-term financing, sales of non-current assets, increases in current liability accounts or decreases in current asset accounts. The uses included operating losses, debt repayment, equipment purchases and increases in current asset accounts.

The financial operations…...

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Reference:

1. Information on Financial Statements and Audit www.investopedia.com www.allbusiness.com/articles/content/17951.asp www.anderson.ucla.edu/course/2004-2005/fa12301/download/Intro_to_audit.pdf

2. Yahoo!'s financial statements www.morningstar.com

Thus, the Board ultimately had little control over this particular cost, which is how it is found itself in a difficult financial position this year. The general lack of control over the budget is a definite weakness for the Bridgeport Board of Education.
In lieu of financial statements, there were two main resources available to help assess this organization's health. Its budget book was the primary source, as it detailed the Board's financial situation with respect to its inflows and outflows. News items are also helpful. Since the Board is not a public company, it is not required to disclose items of financial significance, but such items may come to light through the local news media.

The organization's approach to creating shareholder value is to spend its money on the programs that deliver on its strategic objectives. These include graduating students at a college-ready level, reducing the dropout rate to zero,…...

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Works Cited:

Bridgeport Public Schools Budget Request 2009-2010.

Bridgeport Board of Education website, various pages. (2009). Retrieved November 12, 2009 from  http://www.bridgeportedu.net/ 

Lambeck, L. (2009). Bridgeport schools face health insurance funding gap. Connecticut Post. Retrieved November 12, 2009 from  http://www.allbusiness.com/education-training/education-administration-school-boards/13333032-1.html 

Brewer, R. (2008). Bridgeport school funding dilemma: No easy solutions. 06106. Retrieved November 12, 2009 from http://06106blog.org/2008/03/07/bridgeport-school-funding-dilemma-no-easy-solutions/

During times of extreme pressure from the supply or demand side, the central bank is prepared to go in and support the currency, to help provide stability. This is significant because traders around the world; will use the major currencies as a way to hedge themselves against different risks. Where, they will view the weakness of one country's currency as a sign that they could be facing a number of different economic challenges. (Fixed vs. Floating Exchange Rate, 2007) a good example of this can be seen with the ritish pound, where the ank of England decided to keep interest rates at .5%. This is important, because the increase in rates could be seen as a sign that economic stability could be returning to the country, which would help to reverse the downward pressure on the pound. However, the fact that they decided to keep interest rates unchanged, means…...

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Bibliography

12 Myths of International Trade, 1999, Meti, viewed 3 May 2010,

Bank of England's Decision Affects Pounds Performance, 2010, to Forex News, view 3 May 2010,

Bretton Woods Agreement, 2010, Investopedia, viewed 2 May 2010, .

Fixed vs. Floating Exchange Rate, 2007, Article Base, view 3 May 2010,

Financial Accounting
In Module 2, the $35,000 worth of goods was never purchased, so that figure is irrelevant. Now with Module 3, we begin with a balance sheet that does not balance. To this, several changes are to be made. The company raised an additional $225,000, which balances because Common Stock increases by that amount, and the company receives that much Cash. The dividends represent a decline in cash of that amount, and a decline in Retained Earnings. The asset is covered by $400,000 in the land less $50,000 in cash, and the other $350,000 goes to Notes Payable. The result is as follows:

The first major adjustment that needs to be made, based on Module 2, is that the company needs to add back the $35,500 worth of inventory. This should never have been removed. The second adjustment is that the profit would have been higher, by $35,500 because the cost…...

This was able to guarantee the company a steady and sustainable growth, encouraging a constant profitability over this period of time.
Further more, the company is well-known for its principles of improving its performances and attempting to be more efficient in everything it does. Throughout its existence, the American retailer has focused on implementing information technology techniques in almost all its activities as the common belief was that automatization drives lower costs, lower prices, lower inventory, shorter delivery time and so on. Following these principles religiously, Wal-Mart has become one of the most efficient players in the entire American market, not just in its industry. Efficiency then was logically driving higher productivity rates and increased profitability for the shareholders.

Part D Company Report

The American retail market is dominated by 3 major players: Wal-Mart, Target and Kmart (see table 2). In 2005, the WalMart's market share was 8.82% increasing 0.2% from the…...

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Bibliography

WalMart 2006 Annual Report. On the company's website, last retrieved on September 2, 2007

Fortune 500 (2007),  http://money.cnn.com/magazines/fortune/fortune500/2007/ 

Hale, T. (2004), "Understanding the Wal-Mart Shopper," Consumer Insight Magazine,  http://www2.acnielsen.com/ 

Lehman Brothers (2002), "Wal-Mart Stores - it's All About the Lil' Smokies!," Global Equity Research, www.lehman.com

The industry average current ratio is 2.5 (MSN Moneycentral, 2009), so the Gap has less capacity to meet its current obligations than many of its peers. However, in the retail industry most firms have a large portion of their current assets tied up in inventory, which distorts the current ratio figures higher. The Gap's figure of 1.855 is strong and indicates that the company will have little difficulty in meeting its upcoming obligations.
Overall, the liquidity measures provide an indication of the company's short-term health. Low amounts of working capital or a poor current ratio can indicate that the firm is in short-term distress. The figures for the Gap in 2008 do not indicate a firm in financial distress. Rather, they indicate that the company will have little difficulty in meeting its upcoming financial obligations. The company has strong working capital figure and a high current ratio. The latter is…...

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Works Cited:

The Gap Inc., 2008 Form 10-K. Retrieved August 17, 2009 from  http://www.gapinc.com/public/Investors/inv_fin_sec_filings.htm 

MSN Moneycentral: The Gap Inc. (2009). Retrieved August 20, 2009 from  http://moneycentral.msn.com/investor/invsub/results/compare.asp?Page=ProfitMargins&Symbol=GPS

Different accounting methods can have a major impact on a company's financial statements. The two main accounting methods are accrual basis accounting and cash basis accounting.

1. Accrual Basis Accounting: In this method, revenue and expenses are recorded when they are earned or incurred, regardless of when cash actually changes hands. This results in more accurate financial statements that reflect the company's ongoing financial performance over a period of time. Accrual basis accounting provides a clearer picture of a company's financial position and performance, as it recognizes revenue when it is earned and expenses when they are incurred.

2. Cash Basis Accounting:....

Impact of Accounting Methods on Financial Statements

Accounting methods play a crucial role in the preparation of a company's financial statements. The choice of accounting method directly influences the recognition, measurement, and reporting of financial transactions and events. As a result, different accounting methods can significantly impact the presentation of a company's financial position and performance.

Income Statement

Revenue Recognition: The revenue recognition method determines when revenue is recorded. The cash basis method recognizes revenue only when cash is received, while the accrual basis method recognizes revenue when earned, regardless of cash receipt. This timing difference can affect the timing of revenue....

Customer-Centricity: The Southwest Way

Southwest Airlines stands out as a beacon of customer-centricity in the often turbulent skies of the airline industry. With its unwavering commitment to providing an exceptional travel experience, Southwest has consistently differentiated itself from its major airline competitors, capturing the hearts and loyalty of air travelers. Let's explore the key attributes that set Southwest Airlines apart from the pack:

1. Transparency and Simplicity:

Southwest embraces transparency and simplicity in all aspects of its operations. Its fare structure is refreshingly straightforward, with only two fare classes - Wanna Get Away and Anytime. This eliminates the confusion and frustration often associated....

Efficient Budgeting and Financial Management in Building Finance Departments

Ensuring efficient budgeting and financial management is crucial for the financial health and operational success of buildings. Finance departments play a vital role in implementing strategies and processes that optimize financial resources and ensure accountability. Here are key measures employed by building finance departments to achieve this objective:

1. Strategic Budgeting:

Finance departments develop comprehensive budgets that align with the overall building strategy and prioritize capital investments.
Budgets are created using detailed forecasts and historical data analysis, considering factors such as occupancy rates, maintenance costs, and market trends.
Scenario planning and sensitivity analysis....