Project Report on Financial Strategy Assignment

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Added on 2020-04-21

Project Report on Financial Strategy Assignment

Added on 2020-04-21

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Running Head: Financial Strategy 1Project Report: Financial Strategy

Project Report on Financial Strategy Assignment_1

Financial Strategy 2ContentsIntroduction.......................................................................................................................3Capital structure of the company......................................................................................3Advantages and disadvantages.........................................................................................4Matching principle............................................................................................................5Advantages and disadvantages.........................................................................................6Conclusion........................................................................................................................7References.........................................................................................................................8

Project Report on Financial Strategy Assignment_2

Financial Strategy 3Introduction:This report has been prepared over the financial statements of a company to analyze and investigate the debt and equity position of the company. In this report, capital structure ofa company has been analyzed and further the pros and cons of the capital structure of the company has been described on the basis of their debt and equity position. Further, the accounting concept has been analyzed and according to the position of the company, matching concept has been analyzed and it has been found that how this concept is helping the company to accumulate and manage the materiality concept. More, the advantages and the disadvantages of the matching principle have been investigated in the concern of the company to manage and administer the position and the performance of the company.Capital structure of the company:Capital structure of the company has been analyzed trough investing over the performance and the position of the organization. Capital structure is the point where the debtand equity of an organization are evaluated and the relations of both the sources are identified. It is the process which depicts the user about the ideal ratio of the debt and equity.According to the given case, the debt of the company is Euro 28024 in 2014 and Euro 28576 in 2013. Further, the equity of the company is Euro 55959 and Euro 53659 in 2014 and 2013 respectively. Through these calculations, it has been around that the comapny has raised its funds 33% though the debt and 67% through the equity. According to it, it is required for the company to manage and identify the position and maintain the funds of the company through the market position (Kaplan and Atkinson, 2015).Capital structure20142013WeightTotal debt28024285760.33Total Equity55959536590.6783983The above given table depict about the debt position and equity position of the company. The debt equity ratio of the company is 1:2 which an ideal ratio is. This ratio depictthat the company has just double amount of total debts that means it is quite easy for the company to manage the risk factor as whenever the debt holder would ask for the money,

Project Report on Financial Strategy Assignment_3

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