Accounting

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...