StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...
Free

Financial Management - Assignment Example

Cite this document
Summary
The percentage of sales forecast assumes that several balance sheet components can be expressed as percentages of sales and vary proportionately to sales. The assumption is reasonable but in some cases, the business components may not vary proportionately. For instance,…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER91.8% of users find it useful
Financial Management Assignment
Read Text Preview

Extract of sample "Financial Management"

Question Total assets = current assets + net fixed assets = 27.620% * 14.62 + 52.803% * 14.62 = $11,757,840 Question 2 Cost of goods sold = 72% * 14.62m = $11,383,200Question 3Cash yesNotes payable noMarketable securities noPlant and machinery yes Accounts payable yesInventories yesLong-term debt noQuestion 4a. Current assets = = 16.13870Accounts payable = = 8.83665Thompson trucking companyPro Forma balance sheet as of 12/31/14Current assets 16.13870Net fixed assets 14.

67Total assets 30.8087Accounts payable 8.83665Notes payable 2.97205Bonds payable 9.08Common equity 9.92Total liability and common equity 30.8087 a. 30.8087 – 24.24 = $ 6.5687 million b. The percentage of sales forecast assumes that several balance sheet components can be expressed as percentages of sales and vary proportionately to sales. The assumption is reasonable but in some cases, the business components may not vary proportionately. For instance, the business may enjoy the advantage of economies of scale while purchasing assets and inventory.

Secondly, with high investment machinery, sales can increase without necessarily increasing the machinery. Additionally, the proportion of these components to sales varies hence making past data inappropriate to forecasting. However, the method is simple and appropriate in cases where the required assumptions explained above hold true. Question 5a. Networking capital = current assets – current liabilitiesCurrent ratio = current assets/current liabilities Year 201320122011Net working capital -6311000-6496900-5519800Current ratio 0.5850.60020.565a. The company’s current liabilities exceed current assets across the period, implying that the company is illiquid, i.e. not in a position to clear current liabilities when they are due.

The trend is not clear as the company’s liquidity worsened between 2011 and 2012 but improved in the following year. Question 6Multiple questions 1. D. 270 days or less Question 7 Multiple questions 1 A. Dividend payments ReferencesNarayanaswamy, R. (2013). Financial accounting: A Managerial perspective. Delhi: PHI Learning Private Limited

Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Financial Management Assignment Example | Topics and Well Written Essays - 250 words”, n.d.)
Retrieved from https://studentshare.org/finance-accounting/1663742-financial-management-assignment
(Financial Management Assignment Example | Topics and Well Written Essays - 250 Words)
https://studentshare.org/finance-accounting/1663742-financial-management-assignment.
“Financial Management Assignment Example | Topics and Well Written Essays - 250 Words”, n.d. https://studentshare.org/finance-accounting/1663742-financial-management-assignment.
  • Cited: 0 times

CHECK THESE SAMPLES OF Financial Management Assignment

Financial and Strategic Planning

Excellence in Financial Management, 2000.... Through this venture, the hospital's management will establish the feasibility, stability and the expected benefits of their ambitious plans and projects.... The hospital's management ought to look at labor trends where forecasts on the labor needs and the anticipated production as pertains the expansion of the facility.... This is linked to administrative trends that have characterized the hospital's management and operations....
2 Pages (500 words) Assignment

Management accounting

Governments and NGOs have also been quick to adopt and implement ABC and to make it a core component of their management policies.... Looking at the results, I would say that the answers I came up with are valid confirmations that… The use of these methods provides a convenient and effective way of preparing and documenting financial statements....
4 Pages (1000 words) Assignment

Management acccounting

Any costing system makes it easy for… ion of data used in making reports to the management apart from the same data being integrated into the accounting system of the company (MeÌvellec 2009).... It is used with the intent of giving the full picture of a company's financial situation....
5 Pages (1250 words) Assignment

The Coca-Cola Companys Global Supply Chain

Business Objects Supply Chain Performance management KPI was good but the metrics incumbent at the time made it difficult to carry out such tasks as processing stock out and fill rates.... This is how it landed at SAP's Business Objects Supply Chain Performance management.... Given the success that Coke has enjoyed as a leading beverage company, companies can consider incorporating the program in their supply chain management (Skjott-larsen & Schary 2007, 19)....
2 Pages (500 words) Assignment

Course of action

As a consequence, auditing partners might be enthusiastic to question management on financial reporting and creative accounting issues.... Thus MAPR avoids ‘staleness' emanating from repetitive previous engagements and thus will enhance quality and integrity of audit, since rotation permits the much needed ‘fresh eyes' to evaluate the firm's financial statements as well as accounting policies/practices (Ottaway, 2013).... vidence-the US general accounting office (GAO), current data on ‘restatement rates' linking to ‘error or fraud' in previous financial statements subsequent to the closure of Arthur Anderson in 2002 that demanded compulsory auditor rotation for more than 1200 firms....
1 Pages (250 words) Assignment

Internship Journal

My interaction with the management teams has been positive.... The period has changed my means of learning and has opened a corporate understanding of the financial environment.... The period has changed my means of learning and has opened a corporate understanding of the financial environment.... The challenge has widened my mind on financial issues....
1 Pages (250 words) Assignment

Management Classes

In this essay, management Classes, the author learnt in management classes that a leader needs to always be organized.... The organization starts with having a plan which is SMART.... nbsp;This is the same thing that the two interviewees mentioned that has facilitated their success....
4 Pages (1000 words) Assignment

Store Opening

According to the case study Debbie, seem to have been active in convincing her husband of the financial benefits they would realize from the cookie business.... The paper "Store Opening" looks into the process of business launching on the example of pair Debbi and Randy Fields....
7 Pages (1750 words) Assignment
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us