Accounting Report: Financial Analysis of National Australia Bank Ltd

This accounting report analyzes the financial performance of National Australia Bank Ltd, comparing data from 2016 and 2017. It examines the profit and loss statement, noting a decrease in interest income but an increase in net profit after tax and earnings per share. The balance sheet shows growth in total assets, liabilities, and equity. The cash flow statement indicates a decrease in net operating and investing cash flows, yet an increase in cash at the end of the period. The report concludes that investment in National Australia Bank is advisable due to its improved financial performance and strong liquidity position, suggesting potential for better returns and dividends.

Running head: ACCOUNTING
Accounting
Name of the Student:
Name of the University:
Author’s Note:

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Table of Contents
Answer to Question No (c)..............................................................................................................2
Answer to Question No (e)..............................................................................................................2
Bibliography....................................................................................................................................4

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Answer to Question No (c)
The analysis of the profit and loss statement of National Australia Bank Ltd has
explained the fact that the interest income in the year 2017 with respect to 2016 has reduced
along with the interest expenses. However, by looking at the net profit after tax it is seen that the
overall net profit after tax in the year 2017 has increased with respect to the year 2016. The
earnings per share for the company with respect to 2016 have even increased.
The balance sheet has indicated the fact that the total asset of the company has increased
in 2017 with respect to last year and in the same way the liabilities have increased as well. There
has been a rise in the retained earnings and similarly, the total equity has increased as well.
The cash flow statement of the firm has shown that net operating cash flows have
decreased and the value of the net investing cash flow has reduced. The cash slow statement has
explained that the cash at the end of the period has increased in the year 2017 in accordance to
2016 and the profit and loss statement, the balance sheet and the cash flow statement indicates
that the performance of the bank has improved in 2017 in accordance to the year 2016.
Answer to Question No (e)
By assessing the overall calculations that have been attained for National Australia bank,
the conclusion that has been attained has been that investment in the company is ideal and
therefore investments in National Australia Bank needs to be undertaken because of the fact that
company has been operating in an effective manner in the year 2017 in comparison to the
previous year. The financial statements have disclosed the fact that the company has better net
profit after tax and therefore the earnings per share has increased as well thereby investment in
their shares would yield better results and returns in the current time period. The balance sheet

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has addressed that overall asset of the company is precise and well maintained. The cash flow
statement has addressed that the company has sufficient amount of liquid cash in the year 2017,
which explains their positive strong liquidity position and this explains that the company has a
strong financial position and therefore investments in the company would be provide better
dividends to the investors in the future course of time.

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Bibliography
Cull, R., Demirgu¨ ç‐Kunt, A. and Morduch, J., 2007. Financial performance and outreach: A
global analysis of leading microbanks. The Economic Journal, 117(517), pp.F107-F133.
Orlitzky, M., Schmidt, F.L. and Rynes, S.L., 2003. Corporate social and financial performance:
A meta-analysis. Organization studies, 24(3), pp.403-441.