logo

Report on Business Finance: Case Study of WFB

   

Added on  2020-01-07

15 Pages3850 Words178 Views
Business Finance
Report on Business Finance: Case Study of WFB_1
Table of ContentsINTRODUCTION...........................................................................................................................1TASK 1............................................................................................................................................1i)..................................................................................................................................................1ii).................................................................................................................................................2Iii)................................................................................................................................................3TASK 2............................................................................................................................................6I)..................................................................................................................................................6II).................................................................................................................................................8iii)................................................................................................................................................9CONCLUSION................................................................................................................................9REFERENCES..............................................................................................................................11
Report on Business Finance: Case Study of WFB_2
Report on Business Finance: Case Study of WFB_3
INTRODUCTIONBusiness finance is related with various activities which revolves around the monetaryaspects. The companies require to understand the areas where the investment of funds andeffective debt management can be done. In order to raise the company profits, it is crucial for themanager to have good amount of understanding about the business finance. This will assist theorganization to identify the areas where funds can be invested and debt management can bedone. The present report is based on the case study of Wild Frontier Builders (WFB). Theorganization deals in the maintenance of property where buying and selling is done. In additionto this, the firm provide plumbing, roofing, electrical and other small building work. The citeddocument is prepared with a purpose to compare the difference between profitability and cashflow. In addition to this, the application of working capital is also going to be included in thereport. This provides an effective understanding to reader to have good knowledge aboutbusiness finance (Ahmed, 2010).TASK 1i)Profitability can be defines as the profit earning capacity of the organization. Profit ca beexplained as the amount left after paying all the expenses. In addition to this, withoutprofitability none of the business can survive for the long period. This can be measured byconsidering income and expense of the company. The profitability of the organization can bemeasures with the help of income statement. In order to attain the profitability of the firm, thereare different methods are available for the business. Whereas, the profits can be calculated withthe help of four methods such as net profit margin, gross profit margin, comparative expenseanalysis and profit by statements. In addition to this, net profit margin can be calculated with thehelp of revenue less expenses. On other hand, gross profit margin can be calculated by deductingsales revenue minus cost of goods sold. In addition to this, comparative expense analysis helps inidentifying the percentage of the data related with two years. All these methods helps anorganization to address the profits of the company (Budgeting, 2013).In context to above, cash flow statement is a document which depicts the inflow andoutflow of the cash in an accounting year. It mainly consist of three activities like operating,investing and financing activities. In operating activities there are different activities includes1
Report on Business Finance: Case Study of WFB_4

End of preview

Want to access all the pages? Upload your documents or become a member.

Related Documents
Business Accounting & Finance Question Answer 2022
|19
|3857
|20

MANAGING FINANCE TABLE OF CONTENTS
|16
|4462
|374

Business Finance Report
|11
|3252
|296

Cash Flow and Working Capital Management for Trend Ltd
|13
|3416
|79

Financial management Assignment PDF
|27
|6586
|84

Profitability and Financial Ratios for Company Analysis and Project Financing
|9
|2272
|75