[SOLVED] Financial Data Interpretation and Analysis

The provided assignment is a detailed project report that involves the interpretation of financial data from a company's financial statements. The report includes various financial questions based on the company's financial statements, which require students to analyze the impact on business performance. The report also provides references from books and journals, as well as an online resource, for further study and understanding of financial statement analysis techniques.

Interpret Financial
Information

Table of Contents
INTRODUCTION...........................................................................................................................1
TASK 1............................................................................................................................................1
Q1. ..............................................................................................................................................1
Q.2...............................................................................................................................................1
Q.3...............................................................................................................................................1
Q.4...............................................................................................................................................1
Q5................................................................................................................................................1
Q6................................................................................................................................................1
Q7................................................................................................................................................2
Q8................................................................................................................................................2
Q9. ..............................................................................................................................................2
Q10..............................................................................................................................................2
Q11. ............................................................................................................................................2
Q12. ............................................................................................................................................2
Q13..............................................................................................................................................2
Q14..............................................................................................................................................3
Q15..............................................................................................................................................3
Q16..............................................................................................................................................3
Q17..............................................................................................................................................3
Q18..............................................................................................................................................3
TASK 2............................................................................................................................................3
Q1: ..............................................................................................................................................3
Q2................................................................................................................................................3
Q3................................................................................................................................................3
Q4................................................................................................................................................3

Q5:...............................................................................................................................................3
Q6: ..............................................................................................................................................4
Q7:...............................................................................................................................................4
Q8:...............................................................................................................................................4
Q9:...............................................................................................................................................4
Q10..............................................................................................................................................4
Q.11.............................................................................................................................................4
Q 12.............................................................................................................................................4
Q13..............................................................................................................................................4
Q.14 ............................................................................................................................................4
Q.15.............................................................................................................................................5
Q16:.............................................................................................................................................5
Q17:.............................................................................................................................................5
Q18:.............................................................................................................................................5
Q19..............................................................................................................................................5
Q20..............................................................................................................................................5
Q21..............................................................................................................................................5
Q22..............................................................................................................................................5
Q23..............................................................................................................................................5
Q24..............................................................................................................................................5
Q25..............................................................................................................................................5
Q26..............................................................................................................................................5
TASK 3............................................................................................................................................6
Q1................................................................................................................................................6
Q2................................................................................................................................................6
Q3................................................................................................................................................6
CONCLUSION ...............................................................................................................................7
REFERENCES................................................................................................................................8

INTRODUCTION
Financial information is a kind of formal evidence of those financial activities and
position of an organisations, individual or other entity. The objective of this project report is to
analyse all the financial statement to make appropriate results in order to attain business goals
(Orens and Lybaert, 2010). It consist of various information related with financial accounting
statement those are uses in many business organisation.
TASK 1
Q1.
The given financial records are said to be general ledger accounts those are used to
maintained records and store balance sheet and other income statement.
Q.2
The general ledger account is said to be that account which are use to record financial
transactions of a company.
Q.3
The system in which two entries are made is know as Double-entry system.
Q.4
System of accounting: It refer to be collection, storing and analysing of financial and
accounting information that are helpful in making various decision to track the accounting
activities.
Q5.
Cash accounting methods: Under this accounting method it analyse all revenues and
expenditure at the time physical cash that is actual paid out.
Accrual accounting methods: In this method all the revenues and expenses are recorded
at the time when they are incurred. Accrual means any entry that is recorded in the absence of
cash transaction.
Q6.
Ledger books and trail balance is the document or record in which individual account are
recorded and maintained.
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Q7.
Creditor: It is said to be that entity that are extends credit by providing another entity the
right to borrow money if it is paid back at a later time period.
Q8.
Debtor: It refer to be that a person or business entity that are owes cash to another
concern party (Baker and Haslem, 2015).
Q9.
Bank statements that are comprise of various transaction with having opening and closing
balance.
Q10.
Journal entries:
1. Cash a/c debit to …...
To account receivable..........
(To record receivable collected by the bank)
2. Account receivable a/c debit …...........
To Cash …....
(Check return by the bank)
Q11.
Under this situations
Debit cash.......
To credit Revenue.....
(Being cash is not entered into the business accounting system).
Q12.
An represented checks are is also refer to be the outstanding check those are not
uncleared the bank. It is deducted from the balance per bank in order to change or correct
balance per bank.
Q13.
It is accosted with the final accounts of the company as the bank balance as per the
statements are no matched and not a fake bank balance on creditors.
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Q14.
The total limit of credit is $ 23490 on their credit card account.
Q15.
Total credit limit – available credit
: $ 50000- $ 23490= $26510
Q16.
The total payment received by the credit card company is $ 2,500.00
Q17.
Yes, it is acceptable ration because the minimum amount spend is 256 $ and actual payment is
2500 $.
Q18.
As a supervisor of food and beverages the limit of card was sufficient to make use of the
payment to buy those product and other stocks. From above mentioned data the ratio are
sufficient to make card more useful to make payment (Weil, Schipper and Francis, 2013).
TASK 2
Q1:
Name of that particular report is Income statements.
Q2.
The main purpose of this statement is use to obtain financial profits performance over a
particular time period.
Q3.
The business reported a Net profit of 125,885.
Q4
The second expenses are incurred on Electricity as -750.
Q5:
Fixed cost:
These are said to be those cost which are remain unchanged. Like Insurance.
3

Variable cost: These cost are changes with the production of extra units. Like
Telephone, Advertising, bank fees, depreciation, gas etc.
Q6:
Example of :
Direct cost: Purchase
Indirect cost: Advertising
Q7:
Balance sheet is the correct name of that report.
Q8:
The main purpose of this balance sheet is to know about company financial position.
Q9:
Total money owed by business are divided into current liabilities of 465. non-current
liabilities of 1240.
Q10.
Current assets is the combination of cash, debtors, stock, prepaid expenses. While on the
other hand, non current assets are those which do not related to the business operation.
Q.11
Current liability are those liability which are ultimately connected to the production of
the company (Collier, 2015). While, non- current liabilities are those which are required to run
the business on a regular basis.
Q 12
Cash budget.
Q13
Cash budget assist in knowing the business cash inflows and outflows so that they could
frame decisions effectively.
Q.14
Increasing expenses on advertisement does not create financial problems, as this will not
create any financial constraints but this could decrease their closing balance.
4

Q.15
These are to be reported at the end of the year.
1st April to 31st march of every year for all above mentioned reports.
Q16:
Particular name of this report is sales budget.
Q17:
as the supervisor it the duty to analyse the budget which indicated the total estimation
about future sales.
Q18:
The report is said to be variance analysis report (What is an un presented cheque or check
and does it require an adjustment to the balance sheet?. 2017.).
Q19.
It is used to compare two values to identified changes in variances.
Q20.
No, because it shows negative impact on variances.
Q21.
Dry cleaning department.
Q22.
Bistro
Q23.
Room service with (1080).
Q24.
Occupancy rate in average is 43.33%+65.45%+67% /3 =58.5. room rate for period are $
71.45.
Q25.
Laundry outlets should be targeted more.
Q26.
The concern financial department and senior member of an organisation.
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TASK 3
Q1.
Loadsa Money Bank Loadsa Money Bank Date 29 7 2017
Deposit receipt Paid in by (signature)
Date Notes $ 2,565 0
Account Name
Hayforth Catering
Account Name
Hayforth Catering
Coin $ 123 10
Account ID number
887-789-876-234
Account identification number
887-789-876-234
Cheques $ 310 0
$ Credit $
Q2.
It is simple used to deposit the amount according to the availability of the cash, checks
and coins.
Q3.
Austin’s Events
Trial balance
Acc
no.101
Ledger name Debit
$
Credit
$
Cash on hand 14860
Acc 125
Inventories 6910
Acc 200
Account payable 1700
Acc 410
Sales Revenue 55290
Suspense account 35220
Total 56990 56990
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CONCLUSION
From above project report it has been concluded that financial data interpretation is an
important aspect of a company that is required to analyse the impact on the business
performance. All the information consist of various financial questions that are based on
companies financial statements.
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REFERENCES
Books and Journals:
Orens, R. and Lybaert, N., 2010. Determinants of sell‐side financial analysts’ use of non‐
financial information. Accounting and Business Research.40(1). pp.39-53.
Baker, H.K. and Haslem, J.A., 2015. Information needs of individual investors.
Weil, R.L., Schipper, K. and Francis, J., 2013. Financial accounting: an introduction to
concepts, methods and uses. Cengage Learning.
Collier, P.M., 2015. Accounting for managers: Interpreting accounting information for decision
making. John Wiley & Sons.
Online
What is an unpresented cheque or check and does it require an adjustment to the balance sheet?.
2017. [Online] Available through:
<https://www.accountingcoach.com/blog/unpresented-cheque-outstanding-check-
reconciliation-bank>. [Accessed on 29th July 2017].
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