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FINANCIAL STATEMENT ANALYSIS Part I: Introduction

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Added on  2020-05-28

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FINANCIAL STATEMENT ANALYSIS FINANCIAL STATEMENT ANALYSIS 1 FINANCIAL STATEMENT ANALYSIS Author’s Note: Part I: 2 Question 1: 2 Question 2 2 Question 3 3 Question 4 3 Part II: 4 Abstract 4 Introduction 4 Literature Review 5 Continuous Disclosure Principle 6 Selective Disclosures 7 Conclusion 8 Reference 9 Part I: Question 1: As per the financial statement report of Bellamy’s Australia Limited, the business has a net loss of $809000 (Investors.bellamysorganic.com.au

FINANCIAL STATEMENT ANALYSIS Part I: Introduction

   Added on 2020-05-28

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Running head: FINANCIAL STATEMENT ANALYSISFINANCIAL STATEMENT ANALYSISName of the Student:Name of the University:Author’s Note:
FINANCIAL STATEMENT ANALYSIS Part I: Introduction_1
1FINANCIAL STATEMENT ANALYSISTable of ContentsPart I:..........................................................................................................................................2Question 1:.............................................................................................................................2Question 2..............................................................................................................................2Question 3..............................................................................................................................3Question 4..............................................................................................................................3Part II:.........................................................................................................................................4Abstract..................................................................................................................................4Introduction............................................................................................................................4Literature Review...................................................................................................................5Continuous Disclosure Principle............................................................................................6Selective Disclosures.............................................................................................................7Conclusion..................................................................................................................................8Reference....................................................................................................................................9
FINANCIAL STATEMENT ANALYSIS Part I: Introduction_2
2FINANCIAL STATEMENT ANALYSISPart I:Question 1:As per the financial statement report of Bellamy’s Australia Limited, the business hasa net loss of $809000 (Investors.bellamysorganic.com.au. 2018). The working capital needsof the business are still there but the company has managed to clear its debt as on 30th June2017. The working capital of the business is provided by HSBC with an aggregate amount of$40 million along with a credit card facility of $250000 and a bank guarantee. The creditorsfigure has decreased from previous year and the company has at present secured creditors of$25259000. The trade payables and sundry creditors are shown together at $37726000. Thecompany has a negative cash from operating activities which suggest that the company isfacing problems in operational area of the business (Investors.bellamysorganic.com.au.2018). The rise in the costs of organic ingredients has also contributed to declining marginswhich have improved from last year. The company has brought significant changes in itsoperations by introducing a sales reset strategy and also followed a supply chain reset. Question 2As per the financial report of Bellamy’s Australia Limited, there is no figure ofgoodwill as shown in the balance sheet (Investors.bellamysorganic.com.au. 2018). Howeverthe company has acquired some segmental assets in 2016. These acquisitions consist of$719000 in Australia, $25000 combined in China and Hong Kong and $8000 in East Asia.The cash and cash equivalent s shows a figure of $32,295,000 in balance sheet which was$32,035,000 in 2015. Hence it can be said that there is a slight rise in cash position of thecompany.
FINANCIAL STATEMENT ANALYSIS Part I: Introduction_3
3FINANCIAL STATEMENT ANALYSISQuestion 3The profit and loss statement of Bellamy’s Australia Limited shows that the grossprofit level of the business has fallen to $91521000 in 2017 from $101228000 in 2016(Investors.bellamysorganic.com.au. 2018). Besides this the income statement also shows thatthe company has suffered a net loss of $809000 in 2017 while the same had a net incomefigure in 2016 of $38328000. The assets impairment loss of Bellamy’s is $424000 in 2017 incontrast to $36000 in 2016 (Investors.bellamysorganic.com.au. 2018). The company has alsoexperienced a rise in administration and other costs as compared to thr figures of 2016. Theorganisation has been experiencing trading issues of its shares in the form of Certification andAccreditation Administration of the People’s Republic of China (CNCA). The reason for thisis because the business license has been suspended to export milk formula from Melbourneplant. This has resulted in the stoppage of trading of shares of the organisation.Question 4Based on the above discussion, it can be said that the financial condition of Bellamy’sAustralia Limited has declined in the year 2017. The suspension of shares and trading halthas impacted adversely on the financial condition of the organisation. Due to all such aspects,the organisation has to incur main losses in 2017 (Legg 2017). In this condition, it issuggested to the clients to sell the shares of Bellamy’s Australia Limited.
FINANCIAL STATEMENT ANALYSIS Part I: Introduction_4

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