Project Report Accounting for Managers

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Project Report: Accounting for managers

Accounting for managers
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Introduction:
This report has been prepared to present the financial condition of the ISETAN
(SINGAPORE) LTD and Metro Holdings limited to analyze the financial performance and
the financial position of both the companies. This report depict that it becomes easy for the
user to identify and evaluate the best company on the basis of financial tools. Both of these
companies are performing its business into property and retail segment. The market share of
both the companies is competitive.
Company overview:
The background, mission, vision operations etc of both the companies have been
analyzed. The description of both the companies is as follows:
ISETAN (SINGAPORE) LTD:
ISETAN limited is an international company which has it’s headquarter into
Singapore. The main operations of this company are operating the supermarkets, operational
department and it trades into the general merchandise. This company administers its
functions into two departments which are property segment and retail segment. This company
manages various property and the operations in the Singapore. Currently, this company is
managing various activities to enhance the market share and manage the performance of the
company (Home, 2017).
METRO HOLDINGS LTD:
METRO HOLDINGS limited is an international company which has it’s headquarter
into Singapore. The main operations of this company are property development and
investment. This company administers its functions into two departments which are property
segment and retail segment. This company manages various property activities and the retail
operations in the market of Singapore (Home, 2017). Currently, this company is managing
various activities to enhance the market share and manage the performance of the company.
Balance sheet and income statement:
Balance sheet and income statement of both the companies have been analyzed to
administer the performance and the financial position of both the companies. The details of
financial statement of both the companies are as follows:

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METRO HOLDINGS LTD:
Metro holdings limited’s financial statement has been analyzed. Form the income
statement of the company; it has been found that the total revenues of the company have been
enhanced form 2015 in 2016. The revenue of the company was SGD 145826000 in 2015
which has been enhanced by 6.01% in 2016. Further, the gross profit of the company has also
been enhanced by 35.99% but the net profit of the company has been lowered from 2015
(Garrison, Noreen, Brewer & McGowan, 2010). Operating expenses of the company has been
improved and they have impacted over the operating income of the company.
Further, the balance sheet of the company has been analyzed and it has been found
that the various changes have taken place into the performance of the comapny as well. Total
current assets of the company have been improved by 0.39% from 2015 whereas the total
current liabilities of the company have been lowered by 36.54% in 2016 (Bloomberg, 2017).
The total assets of the comapny has been reduced by 6.58% in 2016 due to the changes into
the long term position of the company whereas the total liability and equity of the company
has also been reduced by 40.99% and -0.12% which depict about huge changes into the
financial position of the company.
ISETAN (SINGAPORE) LTD:
Further, the ISETAN (SINGAPORE) limited’s financial statement has been analyzed.
Form the income statement of the company; it has been found that the total revenues of the
company have been lower form 2015 in 2016. The revenue of the company was SGD
302178000 in 2015 which has been lowered by 2.05% in 2016. Further, the gross profit of the
company has also been lowered by 2.5% but the net profit of the company has been improved
far better from 2015 (Garleanu & Pedersen, 2007). Operating expenses of the company has
been improved and they have impacted over the operating income of the company.
Further, the balance sheet of the company has been analyzed and it has been found
that the various changes have taken place into the performance of the comapny as well. Total
current assets of the company have been improved by 3.53% from 2015 whereas the total
current liabilities of the company have been lowered by 16% in 2016. The total assets of the
comapny has been reduced by 3.03% in 2016 due to the changes into the long term position
of the company whereas the total liability and equity of the company has also been reduced

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by 12.06% and -0.21% which depict about huge changes into the financial position of the
company (Reuters, 2017).
Ratio analysis:
Further, the study has been done over the ratio analysis of both the company to
analyze and evaluate the best comapny in terms of the investment and financial position. The
study of ratio analysis of both the companies is as follows:
METRO HOLDINGS LTD:
Ratio analysis study over METRO HOLDINGS Limited depict about the financial
position of the company on various basis such as liquidity, profitability, efficiency and
solvency. Liquidity ratios of the company depict that the liquid position of the company is not
at all good. The debt position of the company is quite good but the comapny is suggested to
reduce the level of the current assets to manage the cost of the company. Further, the
profitability ratio of the company depict that the profitability ratio of the company has been
lowered but still the net profit margin of the company is very higher and depict about the
good performance of the company in the market (Davies & Crawford, 2011).
Further, the efficiency and solvency position of the company depict that the company
has lowered the days of inventory turnover and accounts receivable to manage the extra cost
and the cash conversion cycle of the company. This analysis depict that the performance of
the company is getting better (Morningstar, 2017). Lastly, the solvency position of the
company depict the company is required to enhance the level of the debt to reach over the
position of optimal capital structure.
ISETAN (SINGAPORE) LTD:
Ratio analysis study over ISETAN (SINGAPORE) Limited depict about the financial
position of the company on various basis such as liquidity, profitability, efficiency and
solvency. Liquidity ratios of the company depict that the liquid position of the company is
quite good. The debt position of the company is quite good and the cost of the company is
also managed by the company. Further, the profitability ratio of the company depict that the
profitability ratio of the company has been enhanced but still the net profit margin of the
company is very lower and depict about the bad performance of the company in the market
(Davies & Crawford, 2011).