Managing Financial Resources

Managing Financial
Resources

Table of Contents
INTRODUCTION...........................................................................................................................3
TASK...............................................................................................................................................3
Question 1. Various types of financial statements and ratio analyses.........................................3
Question 2 Calculation of ratios..................................................................................................5
Question 3 Financial information needs of different stakeholders..............................................5
CONCLUSION................................................................................................................................7
REFERENCES................................................................................................................................9

INTRODUCTION
Financial management is critical for a company's growth and sustainability. In order to
accomplish the business goals, it entails preparing, organising, managing, and tracking their
financial capital (Derqui, Fayos and Fernandez, 2016). Financial management may assist the
company in making efficient use of capital, meeting stakeholder expectations, gaining a
competitive edge, and preparing for long-term economic stability. Company should render the
repayment terms of service clear from the start to lower the likelihood of late and non-payment
of business bills. They can also submit invoices which are straightforward and correct as soon as
possible. They can keep track of certain consumers' accounts while using a computer controlled
credit management program. In this report, various types of financial statements and ratio
analyses and calculation of ratios and financial information needs of different stakeholders is
disused.
TASK
Question 1. Various types of financial statements and ratio analyses.
Financial statements are mostly a good way to maintain a real and reasonable picture of the
previous fiscal year though financial results as well as the overall economic state only at ends of
each year. These would be organized by both for-profit and non-profit entities that conduct
financial transactions. It's possible that the forms will vary. Financial reports are an essential
aspect of every company's annual report (Devin and Richards, 2018).
Balance sheet: A balance sheet is indeed a parametric sheet that shows the assets, liabilities,
versus equity balances. Current assets of land, plant, and machinery are the most common asset
classifications. Present and lengthy liability are the most common types of liabilities. Common
shares, preferred shares, as well as current liabilities all are displayed individually as equities. As
well as every major expense on even a balance sheet is extremely important.
Income statement: Income statements, including balance sheets, are viewed over time rather
than as of a specific date. Even as name implies, an income budget is a description that indicates
the measurement of earnings for a specific period. Net revenue, operating costs, interest expense,
interest costs, royalties, valuation adjustments, and net profits are the major elements of even a
financial statements. To arrive at net profits, better all elements are excluded from net revenue.
They arrived at a different idea of income to cover any form of expense.