Financial Performances and Operations in Accounting Capstone

This presentation provides an overview of the financial performances and operations in an accounting capstone project. It includes key performance indicators, ROI, ROE, original targets, revenue analysis, balance sheet effects on ROE, liquidity ratios, cash position, strategies taken, stock and production levels, worker's productivity, capacity upgrades, customer marketing, and resources/learning.

ACCOUNTING
CAPSTONE

a. Financial Performances
i. Summary of key performance
indicators
Y10 Y11 Y12 Y13
(projected)
Revenue $432,646 $474, 543 $551,337 $482,747
Expense $67,317 $86,485 $132,972 $106,699
Net profit $40,000 $54,444 $88,953 $71350
Net profit % 9.2% 11.5% 16.1%

ii) ROI
• The rate of investment will reveal the rate that will definitely give the
amount of profit to the shareholders that will definitely increase the
level of company revenue.
• The ROI will give the development of resources and the shares the
economy is giving.
• ROI = Net income/cost of investment.
iii) ROE
• In Y10, the ROE is weighted to 20
• In Y11, the ROE for the F Bhullar shoes is 23 and the same variable is
having ROE in Y12 is 31.

iv) Original targets
• The company is going to identify the development of original targets.
• The target that the company has set in making the budget and
resources distribution.
v) Revenue
• The revenue will identify the amount of the income the company is
getting from the market.
• The company is mainly getting the amount of revenue both from the
selling of products both in online and offline platform.
Y10 Y11 Y12
Net sales revenue
Revenue from
internet
$90, 315 $90,004 $124,680
Revenue from
wholesale
$314,731 $379,437 $403, 571

vi) Re balance sheet / financing/share issues, effects on ROE
• The company is going to increase the development of resources and
the share of capital and return of equity
• On the other hand, the company is making a comparison in all the
years taking the balance sheet into actions.
• On the other hand through the increase in balance sheet the effect is
falling heavily on the ROE.
• In Y10, the amount of money the company is having is around
$190,000 as the beginners’ equity and the earnings retained is
$20,000.
• The total earning that the shareholders earned is around $210,000.

vii) Apply some liquidity ratios and analysis, debtors
• In the year the Y10, the company is having cash ratio of 2.7.
• In Y11, the cash ratio is 3.05 and in the Y12, the cash ratio is 4.73.
• The liquidity ratio will automatically increase the probability of the
company to finance the short term debts.

viii) Company’s cash position
• In Y10, the company is having cash reserve of amount $421,841.
• The aim of the company is to increase the level of cash in form of
revenues and other options.
ix) Strategies taken
• In order to increase the development of their resources, the company
will be mainly looking to indulge the development of both human and
capital resources.
• It is highly important for the company to bring in enough motivation
and enough amount of investment that will definitely increase the
development of better products.

b. Operations

i) Stock level
• The company is currently having stocks of around $20, 000 and the
amount of the stocks that are being stored are in the company are
getting returned to the shareholder on the circular way.
ii) Production level
• In the Y10, the company has produced about 9156 pairs of shoes.
• In the Y11, the company has produced about 9100 pairs of shoes.
• Moreover, in Y2, the company is producing 8500 pairs of shoes.
• In Y10, the total amount of footwear that are being produced within
the company is mainly looking to incorporate the development of
resources that are being currently allocated to the company.

iii) Worker’s productivity
• In North America, in both year the worker productivity was around
5000.
• in the same year, the productivity of the workers in Asia pacific is 3500.
• The employee productivity is not increasing irrespective of the
geographical locations.
iv) Upgrades of capacity required
• It is highly important for the company to increase the development of
technologies that will definitely increase the improvement in the
involvement of resources.
• Now with the up gradation of technology the company will increase the
employees’ production.

v) Plant capacity utilised fully or underutilised
• In some of areas, the plant capacity has not fully utilised and in some
of the areas, the capability and the actual production rate is 0.
vi) Other comments
• The company is highly willing to indulge the improvement in the
economic productivity but in order to increase the development of
resources.

c. Customer marketing

Y10 Y11 Y12 Y13 (projected)
Sales per region ($) $432,646 $474,574 $534,140 $473,367
Sales per region no 88,200 93151 98254
Pricing average
Internet
Wholesale
Sales per dollar of advertising
spend
Internet $27,277 $24,741 $27,798 $28,154
Wholesale market $29,323 $30,069 $28,769 $28,423

d. RESOURCES
/LEARNING

Y10 Y11 Y12 Y13 (projected)
Number of staff employed 1943 1928 1931 1939
Effect on corporate image
Training strategies and
expenses
937 931 936 940

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