BTEC Unit 5: Financial Statements and Ratio Analysis Report 2021/2022

This report presents a comprehensive analysis of financial statements, focusing on accounting principles and ratio analysis. The assignment requires the preparation of year-end financial statements, including adjustments to the income statement and balance sheet, based on provided data such as trial balances, accruals, prepayments, bad debts, and depreciation. Additionally, the report includes a detailed letter to a client, calculating profitability, liquidity, asset usage, and investment ratios. It also provides a critical evaluation of the business's performance year-on-year, referencing relevant benchmarks and discussing the limitations of financial ratios. Furthermore, the report outlines the benefits of contemporary accounting software and offers justified conclusions and recommendations for the client, demonstrating the application of accounting knowledge to deliver high-quality, accurate data and information. The report adheres to accounting principles, conventions, and standards and includes a bibliography using the Harvard referencing system.