MDL Financial Position

MDL financial position

Contents
INTRODUCTION.......................................................................................................................................2
MAIN BODY..............................................................................................................................................2
Section (i)................................................................................................................................................2
Section (ii)...............................................................................................................................................4
Section (iii)..............................................................................................................................................5
CONCLUSION...........................................................................................................................................6
REFERENCES............................................................................................................................................6

INTRODUCTION
It is essential for companies to manage their financial position in an effective manner and
this can become possible by applying vital range of techniques. Apart from these techniques and
methods, this is essential for companies to know about key concept of accounting such as profit,
cash flow and many more (Babajide, Olokoyo and Taiwo, 2016). The project report is based on a
case study of Mediterranean Delights Ltd. With regards to this case study, various kinds of
concepts are included in the report such as cash flow, profit, working capital and many more.
MAIN BODY
Section (i)
(a) Define Profit and Cash Flow and show how and why they are different
Profit- Profit is income paid to the owner through an advantageous cycle of business
development as part of accounting. Profit is a productivity indicator, and is the key concern of
the owner in the business development income training process. It is common goal of all
business entities to gain higher amount of profit so that they can beat to their competitors.
Cash flow- Cash flow (CF) implies the increase or decrease of cash that a business, organization
or individual has. In finances, the term represents the volume, which is generated or consumed
over a certain period of time, of cash (currency). There are a variety of CF forms that are
essential for the activity and financial analysis of a company.
Difference between cash flow and profit:
Basis Cash flow Profit
Mean The difference between the revenue
produced and the overall expense
value can be determined.
At the other side, the value of cash that
comes from business can be specified.
How to
measure
To measure the worth of earnings,
business accountants generate a
declaration of profits.
When preparing cash flow statement to
get the interest of cash management
accountants from corporations