Manage Finances: Review and Analysis of Financial Data

Running head: MANAGE FINANCES
Manage Finances
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MANAGE FINANCES
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Contents
Introduction:....................................................................................................................................2
Review and analysis of previous financial data:..............................................................................2
Reasons behind generation of previous profit or incurring loss:.....................................................5
Business plan review to establish dates critical to resource generation for the company:..............5
Analysis of cash flow trends:...........................................................................................................5
Statutory compliance requirements and liabilities for taxation:......................................................8
Existing software suitable for financial management of the company:...........................................9
Allocation of resources using previous financial data:....................................................................9
Estimates of new items for inclusion in the budget:......................................................................10
Preparation of budget:....................................................................................................................10
Managers and supervisors should be clear about the budget:........................................................12
Risk management to ensure no opportunities for misappropriation of fund:................................12
Profit and loss statement review:...................................................................................................12
Budget revision to deal with contingencies:..................................................................................15
Due diligence compliance:............................................................................................................15
Identification of significant issues in the financial statements:.....................................................15
Evaluation of financial management effectiveness:......................................................................16
Conclusion:....................................................................................................................................16
References:....................................................................................................................................17

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MANAGE FINANCES
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Introduction:
BHP Group Limited is an Australian based multi-national company involved in mining of
minerals, metals and petroleum in all across the globe. Founded in 1885 the company has a long
and fruitful journey to be world’s largest mining company at the present. Along with the
evolution of financial statements of the company over the years to assess the financial
performance of the company this document also explains the importance of budgeting in
financial management of the organization.
Review and analysis of previous financial data:
In order to review and analyze the previous financial data of the company it is important to have
the financial statements of the company from the past. The financial information of the company
has been obtained from the annual reports of the company to accumulate the financial data from
the past in one place to analyze the past financial data of the company properly. The table below
contains the financial information related to the performance of the company over the last five
years (Welch-Devine, 2017).
INCOME STATEMENT of BHP Billiton Limited
Amounts denominated in US$' millions 2014-06 2015-06 2016-06 2017-06 2018-06
Gross revenue 67,206.
00
44,636.
00
30,912.
00
38,285.
00
43,638.
00
Less: Cost of revenue 32,086.
00
24,057.
00
18,721.
00
17,016.
00
17,204.
00
(A): Gross profit earned 35,120. 20,579. 12,191. 21,269. 26,434.