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Financial Management in Busienss Assignment Help
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Added on 2021-02-21
Financial Management in Busienss Assignment Help
Added on 2021-02-21
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BUSINESS FINANCEPROJECT- FINANCIALMANAGEMENT
TABLE OF CONTENTSINTRODUCTION...........................................................................................................................11........................................................................................................................................................1a. Explaining the accounting equation and its application..........................................................1b. Evaluating the changes in the components of balance sheet with explanation of their effects......................................................................................................................................................1c. Explaining the reasons for the change in the capital for an accounting period.......................22. ......................................................................................................................................................2a. Analysing the effect of the revenue expenditure on the profits and the impact of theincorrect evaluation of the revenue expenditure and capital expenditure...................................2b. Explaining the contrast between the gross and the net profit..................................................3c. Explaining the contrast in between the cost of the sales and the turnover..............................33........................................................................................................................................................3a. Explaining the purpose of the cash flow statement ................................................................3b. Explaining the grounds for the discrepancy in between the bank and the cash statement .....44........................................................................................................................................................4a. Assessing the ways in which the business uses the benchmarking in respect of measuringthe performance with evaluation of its benefits and the limitations...........................................4b. Analysing the efficiency in the performance of the company ...............................................4CONCLUSION................................................................................................................................5REFERENCES................................................................................................................................6
INTRODUCTIONBusiness finance means the money and the credit that are employed in the business. Itincludes the acquisition and the utilization of the funds optimally for attaining the smoothfunctioning of the business operations. The present study is based on the Shower pak Limited,family owned manufacturer, produces moulded shower for the room units. Furthermore, thestudy throws deep insights relating to the accounting equation, components of the balance sheetand the grounds of discrepancy in the bank and cash statement. 1.a. Explaining the accounting equation and its application.Accounting equation refers to the basic principle of the financial accounting. It states thepoint of the time where the asset value of the business equates with the liabilities value and theshareholders' equity (Burritt, Hahn and Schaltegger, 2016). Asset referred as the resource that iscontrolled by the business and act as the economical use for the business. Under this the assets ofthe company equates to the liability and the equity. The entire concept of the double entry bookkeeping runs on the basis of the accounting equation. This shows that all the assets that areacquired by the company is either by the debt or through equity financing. For instance- when the enterprise commences its business, the asset purchased by it areeither from the cash or from the loans. Thus, the assets of an entity stems from either thecreditors or the investors that includes the liabilities and the equity. b. Evaluating the changes in the components of balance sheet with explanation of their effects.Particulars20172018% change Non-current assets Premises5240736040.46%Plant and equipment 2375405770.82%Total fixed assets76151141749.93%Current assetsInventory2386342043.34%Trade receivables 2540428068.50%Total current assets4926770056.31%Total assets 125411911752.44%Capital 1
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