logo

Understanding Financial Statements- Assignment

   

Added on  2020-12-09

9 Pages2339 Words196 Views
Understanding FinancialInformation
Understanding Financial Statements- Assignment_1
Table of ContentsINTRODUCTION...........................................................................................................................1LO1..................................................................................................................................................11.1Explaining the financial ratios and measuring the performance of the business...................1LO2..................................................................................................................................................12.1Explaining the legal requirement of the financial information from different types oforganizations in UK....................................................................................................................1LO3. ................................................................................................................................................23.1 Evaluating the need for financial information by the management......................................2LO4. ................................................................................................................................................34.1 Identifying the users of financial information and their interest in this information............3LO5..................................................................................................................................................45.1 Explaining the purpose of the financial statements in the business. ....................................4CONCLUSION ...............................................................................................................................4REFERENCES................................................................................................................................5
Understanding Financial Statements- Assignment_2
INTRODUCTIONFinancial statements are the systematic record of the financial transactions, activities andevents which contains monetary value. It represents the position of the business and presented inthe structured manner. Such statements are easy to understand and simple to develop. It plays acrucial role in summarizing, interpreting and communicating the results to the users. The presentstudy is based on the evaluation of the financial performance of the Mercia Trading Ltd byanalyzing its financial ratios. Furthermore, the report includes the financial information that arelegally needed by various firms in UK. The study also includes the need, users and the purposeof financial statements for the users and the management. 1.1Explaining the financial ratios and measuring the performance of the business.Mercia Trading Ltd.Ratio analysis ParticularsFormulaAmount2018Liquidity ratio Current assets 525Current liabilities255Current ratio Current assets/current liabilities2.06Current assets 525Inventory 240Quick assetsCurrent assets-inventory285Current liabilities255Quick ratioQuick assets/current liabilities1.12Profitability ratio Gross profit470sales1430Gross profit ratio Gross profit/sales*10032.87%Operating profit180sales1430Operating profit ratio Operating profit/sales*10012.59%1
Understanding Financial Statements- Assignment_3

End of preview

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

Related Documents
Assignment on Business Finance
|10
|2231
|37

MSC Accounting and Finance: Financial Analysis and Cash Budgeting
|11
|2104
|252

Financial Performance and Investment Appraisal of Persimmon Plc
|13
|2522
|26

Financial Analysis of Bhel: Risk and Variance
|9
|898
|33

Cash Flow, Financial Ratio and Cap Analysis
|11
|1800
|92

Financial Decision Making: Calculation of Ratios and Performance Analysis
|8
|1838
|35