Accounting

Introduction

SSP plc is engaged in food processing, supplying all the main supermarket chains with first processed meat products. The report is divided into three parts. First, it illustrates the users, sources and purpose of financial information. Second, it analyzes sources of finance. Third, it analyzes the financial position and operation of the company, including ratio analysis, cash flow statement analysis, advices for operation, financial situation and expansion.

Users, sources and purpose of financial information

Management will use all sources of information, like final account, ratio analysis, to compare performance with itself and competitors to identify areas of improvement.

Employees will concern job security and future salary negotiations via using cash flow statement, trading, profit and loss account and profitability ratios.

Short-term creditors will use cash flow statement, liquidity ratios and creditors payment period to evaluate the level of risk and the prospects of the money being repaid.

Authorities will use all sources of financial information to ensure the company satisfies all legal requirements.

Competitors will use all sources of financial information to get a “lead” in the market.

Analysts are interested in all sources of financial information to compare and analyze to provide clients with report for reference.

Sources of finance

SSP plc has been financed in the following ways.

|Source of finance |Type of finance |Term of finance |

|Trade Credit |Loan Capital |Short-Term |

|Tax |Loan Capital |Short-Term |

|Bank Overdraft |Loan Capital |Short-Term |

|Debentures...