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Cash, receivables & inventory cash balances increase compare to past years

   

Added on  2020-10-22

11 Pages3287 Words192 Views
FINANCIALACCOUNTING
Cash, receivables & inventory cash balances increase compare to past years_1
Table of ContentsEXECUTIVE SUMMARY.............................................................................................................3INTRODUCTION...........................................................................................................................4MAIN BODY...................................................................................................................................4Cash receivables and inventory...................................................................................................4Long-Lived-Assets (PP&E and Impairment)..............................................................................6Investment...................................................................................................................................8CONCLUSION..............................................................................................................................10REFRENCES.................................................................................................................................11
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EXECUTIVE SUMMARYThis project report is summarises as cash, receivables & inventory cash balances areincreases compare to past years. After calculation of asset turn over, fixed assets turn over andreceivables turn over ratios are shows performance of the company and decreases and increasesamount of particular item. For inventory costing using method LIFO (last in first out) andweighted average method. Impairment of fixed assets as well as goodwill in their financialstatements. In investments head classified holding gains that are helping to recognize particularitem.
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INTRODUCTIONFinancial accounting is a terminology of gathering information related to financialtransactions, events and recording them in a systematic manner according to accountingstandards (Beatty and Liao, 2014). This report outlines the key financial areas of ABBorganisation. There is a discussion made on cash receivables and inventories for the current year.Calculations of Long term assets and impairment are analysed in this report. Investmentsanalysis regarding reporting and securities or trading are analysed with market change andholding gains. MAIN BODYCash receivables and inventoryCompany's cash balanceCash and cash equivalents is considered high liquid current assets in organisation. It helpsto manage day to day monetary transactions. As per the annual report of ABB cash and cashequivalents were calculated as $4526 million for 2017 and $3644 for 2016. It seems that cashand cash equivalent increased during the year 2017 by £882.Currency and other local regulatorylimitations related to the transfer of funds exist in a number of countries where the companyoperates. In funds including fees or loan repayments, every day dividends can not be promptlytransferred abroad from these countries and are there fore deposited and used for working capitalneeds locally. These funds are included in cash and cash equivalents as they are not reasonedlimited. Receivables turnover ratioIt is activity based ratio that are measuring efficiency of firm to uses its assets. It will becalculated on the basis net value of credit sales of particular time and same period averageaccounts receivable (Lovell, 2014). It is calculated as follows - Accounts Receivable Turn over = Net credit sales/Average accounts receivablesRatio Analysis 20162017Net credit sales3382834312Average accounts receivables48485208Receivables turn over6.986.59This means the company collects its receivables in 2016 have 6.98 accounts receivableand in 2017 have 6.59. It is decreasing compare to last year and it is goods for company. High
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