Introduction
This report was requested by Babs Lee with the purpose to make a detailed analysis on required topics using data from the financial reports of a wholesale business called Isaleh. In this report, the income statement prepared using the accrual basis of accounting will be explained, the differences between the accrual basis of accounting and the cash basis of accounting will also be discussed. Moreover, explanation will be made on working capital and the importance of managing it. In addition, this report will give a definition of credit sale and illustrate reasons of using credit sale. Finally, this report will make few recommendations on the operations of Isaleh.
Analysis
(i) Explain why the Income Statement is prepared using
…show more content…
(2005), the income statement is based on the accrual basis of accounting, while the cash flow statement is based on the cash basis of accounting. Under accrual basis of accounting, businesses count sales as revenue when the order is placed. Under cash basis of accounting, revenue is not recognized until the actual payment is made.
3) Analyzing differences in the case of Isaleh
In the case of Isaleh, the income statement shows that the main income is contributed by Sales ($588,000) and the gross profit is 140,000. The total expense is $110,000 and the net profit is $30,000. It can be concluded that the major profit comes from sales. Using the accrual basis of accounting in the income statement, Isaleh count sales as revenue when the order is placed, and it is also easier to match sales with the incurred expenses in the same time period.
Meanwhile, the cash flow statement clearly shows that the cash outflow comes from three types of activities including Operating Activities ($486,100), Investing Activities ($6,000) and Financing Activities ($37,500). As the cash inflow comes from Customers ($526,500) in operating activities, it can be stated that the main income is contributed by sales related to customers. Under cash basis of accounting, Isaleh’s cash outflow and cash inflow are recorded only when they actually
most important aspect of doing business. “Sellers and advertisers want to be able to determine what the potential market is for their product or service, as well as the best ways to reach potential consumers” (Terrell, 2013). Once a goal is set, an organization first must decide if it wants to operate locally, regionally, nationally, and/or internationally, as the size of the geographic coverage has a large influence on demographic coverage. It is crucial for a business to understand what it is meant
1. Summary This report defines the activities of BT Group (British Telecom), including financial performance, i.e. statistics and balance sheets of the past five years. Showing considerable amount of evidence on how BT Group has evolved since its beginning. Furthermore it includes an overview of how BT Group is structured in its various departments and the people involved in these departments. Before any of the previous information can be identified it is important that an understanding is
Company File” set up or first set up of company accounts. To start using this, click on Setup, select Easy Setup Assistant as shown below: There are three ways to set up Accounts List in the Easy Setup Assistant as follows: 1) Start with Accounts List Provided by MYOB Premier; or 2) Import a list of Accounts provided by Accountant after setting up the company file; or 3) Build own Accounts List once company user have started using MYOB Premier Now, we discuss the first way: 1. START WITH ACCOUNTS
Proposal: this section includes specifics about your chosen organization and the proposed project. 1. Size of organization: here, provide a brief description of your chosen organization that includes annual revenue, number of employees, locations, divisions, and other relevant information. Peg and Kris, LLC is a new online clothing company that got its start in June of 2016 (Peg and Kris, LLC, 2016). It all began when two former employees acquired Kayce Hughes, LLC, a seventeen-year-old company
Business at Work Task 1: Introduction BT plc is British Telecommunication public limited companies (plc) registered in England Wales, with listings on the London & New York stock exchanges. The Business is well-known providers of telecommunications services and solutions for everybody in the UK. This business exists to supply telecommunications services, products and services, and IT solutions to corporate and residential customers. BT's Group plan is to increase the value for shareholders
Business Problem and Recommended Solution Intrigued by the opportunity of owning his business, Larry Brownlow must decide whether a distributorship opportunity with Coors is a worthy venture. To aid Larry with his decision, the following pages provide an assessment of this business opportunity. With a limited research budget of $9,500 (p.143), careful selection of reports was essential to obtain both the necessary data to project profitability (e.g., revenues, cost of sales, other expenses, Coors
Payment and liabilities for products and service Every franchise of Toyota has to pay fee for sell their product in country and to prove business in individuals and in whole country. Goodwill In Toyota franchising they gain benefits through marketing their products all over the world and make goodwill in whole countries for their product and Toyota also have a good reputation in all countries
activities that produce value in the form of products and services in the hands of the ultimate customer.” Background of SCM: Even though the term "supply chain management" was first coined by Keith Oliver in 1982, the concept was of great importance from the early 20th century especially when the assembly line was created. SCM has risen to eminence over the last ten years. Some authors defined SCM in operational terms involving the flow of materials and products, some viewed it as a management philosophy
freight forwarding company in the 1850s, then repositioned as a travel agency, a financial and consulting services company. By recognizing that technology has changed the way people communicate and transact with one another, American Express understands the scope and role of internet technology on the travel market. The corporation turned itself into the booming sector of online services and became an interactive business player in a wide array of services. Today, American Express, known as Amex, is
structure that can reduce operational cost 3. Generate a higher growth margin. To achieve these objectives, the document includes several possible alternatives that the company can choose from, where each alternative is provided with several benefits and loss. These alternatives include: 1. Elimination of Wholesale Distributors 2. Taking on Moritz Proposal 3. Going for Private Label After analyzing all the alternatives, the most appropriate alternative would be alternative #1. Reasons, Soren Chemical
Computer System in the Context of Retail Business Anthony Wu 11CS2 Today, retailing businesses have to had up to date technology in order to be successful. Accurate, efficient communication sending and receiving can affect the business. So it is very important that to have the latest technology such as computers and networks. Retailing on a local and global scale can also affect how successful is the business. Locally, efficient networking that retailing businesses had allow customers purchase
operations and information According to a briefing report by UK Passport Agency: “Delays in issuing passports earlier this year led to much anxiety and inconvenience for members of the public hoping to travel. By June, the Passport Agency had around 565,000 applications awaiting processing. The initial cause of delay was the introduction from October 1998 of a new passport processing system to replace an ageing computer system. Siemens Business Services is responsible for providing the new system
References 18 Executive Summary This report provides a detailed analysis and evaluation of the Musgrave Group’s approach towards Project Management. The report gives an overview of the challenges faced within Supply Chain Management and how these challenges have been addressed by the successful implementation of the Musgrave Simplifies Retail (MSR) project. Some of challenges faced within the Supply Chain Management are as follows: Improper analysis of data with warehouses & retail stores Long
Data Analysis Of Wal-Mart Stores Inc. COMPANY BACKGROUND Wal-Mart initially began its operations in 1945, when Sam Walton leased a ‘Ben Franklin’ franchise variety store in Newport, Arkansas. After relocating to Rogers, Arkansas in the early 1950s, Sam Walton’s ‘Ben Franklin’ became ‘Walton’s 5 & 10’. By 1962, Walton found himself the chain owner of 11 different Walton’s stores across Arkansas. He then decided to rename the chain ‘Wal-Mart’, after himself. On October 31, 1969, after further
“RATIO ANALYSIS” FOR “Mahindra and Mahindra Financial Services Limited.” SUMMER INTERNSHIP REPORT A Report submitted in partial fulfillment of the requirement for the Masters Degree in International Business course of Amity University Submitted by Naina Pahuja Under the Guidance and Support of Dr.Naimta Sahay (Faculty) Amity School of Business AMITY SCHOOL OF BUSINESS AMITY UNIVERISTY UTTAR PRADESH NOIDA. Acknowledgement I take this opportunity to express my most profound appreciation