Accounting Concepts and Financial Analysis of R Reed Co Pty Ltd

Running Head: Accounting System
Accounting Concepts

Accounting System 1
Executive summary:
The financial statements of Ryan Reed are presented in the summarised manner in this report.
From the financial statements, the liquidity and profitability position is evaluated using the
ratio analysis technique. The current ratio and quick ratio of the company are showing better
results than the corresponding tentative results of its competing firm which indicates that it
has sound liquidity position. Also, the gross profit of the company is also with the range of
profits earned by its competitors. However, the net profit of the company is negative which
signifies that the company has incurred losses because of spending more amount in operating
expenses than its overall income in the concerned financial year.

Accounting System 2
Table of Contents
Executive summary...............................................................................................................................1
Introduction...........................................................................................................................................3
Part a: Summarised Financial Statements.............................................................................................3
Part b: Ratio Analysis.............................................................................................................................5
Part c: Methods of Depreciation...........................................................................................................6
Part d: Methods of Inventory Valuation................................................................................................7
Part e: Internal Controls........................................................................................................................7
Conclusion.............................................................................................................................................8
References.............................................................................................................................................9