Submitted by: Submitted by brucee1989
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Category: Business and Industry
Date Submitted: 12/19/2011 03:40 AM
2.1 produce a report which analyses and compares the financial statements of a supply chain company
Total assets:
As shown in the balance sheet. Fixed assets of Swift Logistics in Year 1 is 686,430, and its current assets is the summation of stock, debtors and cash.
That is
Stock + Debtors + Cash = 2,265+7,800+28,000=38,065.
So the total assets in year 1 is:
Fixed Assets + Current Assets = 686,430 + 38,065 = 724,495.
Use the same method, the current assets in Year 2 is:
Stock + Debtors + Cash =3,455+3,244+56,900=60,144.
we can calculate the total assets in year 2 is:
Fixed Assets + Current Assets = 704,419 + 60,144 = 764,563
Compare the results of total assets of both two years. We can learn that the total asset in year 1 is less than year 2.
Total debts:
Total debts is the result that current liabilities plus the long-term liabilities.
So the total debts of year 1 is:
Current liabilities + Long term liabilities = 20,600 + 550,300 = 570,900
The total debts of year 2 is:
Current liabilities + Long term liabilities = 131,890 + 520,000 = 651,890
Long-term capital:
Long-term capital is the result that fixed assets plus working capital. So the long-term capital in Year 1 is:
Fixed assets + Working capital = 686,430 + 17,465 = 703,895
The fixed asset in Year 2 is 704,419. The working capital in Year 2 is -68,291. So the long-term capital in Year 2 is:
Fixed assets + Working capital = 704,419-68,291 = 636,128
Compare the result, we can know that the long-term capital in Year 1 is more than Year 2.
2.2 show how to evaluate a statement of accounts for a supply chain company. Use a minimum of four financial ratios and explain the results
Here are two indicator to response the debt security and debt repayment ability.
Current ratio:
Short-term debt paying ability refers to the ability of the enterprise to repay the short-term debt. Usually use current ratio to measure the Short-term debt paying ability. The analysis of Short-term debt paying...