ACC 304 Capstone: Financial Performance Analysis and Reporting

This report provides a comprehensive analysis of a company's financial performance over several years, focusing on key performance indicators (KPIs) such as revenue, net profit, ROI, and ROE. It examines the company's financial data, including balance sheet information, financing activities, and share issues, to assess their impact on ROE. Liquidity ratios and debtor analysis are applied to evaluate the company's short-term financial health and cash position. The report also delves into operational aspects, including stock levels, production levels, worker productivity, and plant capacity utilization. Furthermore, it analyzes customer marketing strategies, sales per region, pricing, and advertising spend to gauge marketing effectiveness. The report includes a reference list and aims to provide a thorough understanding of the company's financial and operational performance.

ACCOUNTING CAPSTONE

Summary of key performance indicators
Y10 Y11 Y12 Y13
(projected)
Revenue $432,646 $546,352 $686,879
Expense
Net profit $40,000 $29,861 $86,832
Net profit % 9.2% 5.5% 12.6%

ii) ROI
• The rate of investment will reveal the rate that will definitely give the
amount of profit to the shareholders that will definitely increase the
level of company revenue.
• The ROI will give the development of resources and the shares the
economy is giving.
• ROI = Net income/cost of investment.
• Through the calculation of process the shareholder will be able to
identify the shares of profit of the shareholders.

iii) ROE
• In Y10, the ROE is weighted to 20%
• In Y11, the ROE for the G Company shoes is 13.9% and the same
variable is having ROE in Y12 is 33%.
• The ROE is increasing year by year because of the fact that
investment is increasing and the ROE is going to increase the
development and capitalization of resources.

iv) Original targets
• The company is going to identify the development of original targets.
The target that the company has set in making the budget and
resources distribution.
• Through the development of the resource utilisation, the company will
be able to identify the absolute advantages that the company will get
in identifying their gaps in their investment.

v) Revenue
Y10 Y11 Y12
Net sales revenue
Revenue from internet $90, 315 $108,241 $180,341
Revenue from wholesale $314,731 $438,111 $506,748

vi) Re balance sheet / financing/share
issues, effects on ROE
• The company is going to increase the development of resources and
the share of capital and return of equity. On the other hand, the
company is making a comparison in all the years taking the balance
sheet into actions
• In Y10, the amount of money the company is having is around
$190,000 as the beginners’ equity and the earnings retained is
$20,000.
• The total earning that the shareholders earned is around $210,000

vii) Apply some liquidity ratios and
analysis, debtors
• In the year the Y10, the company is having cash ratio of 2.7.
• In Y11, the cash ratio is 3.05 and in the Y12, the cash ratio is 4.73.
The liquidity ratio will automatically increase the probability of the
company to finance the short term debts
• On the other hand, using the liquidity ratio, the company is going to
indulge the improvement in the debt financing.

viii) Company’s cash position
• In Y10, the company is having cash reserve of amount $421,841 and
the aim of the company is to increase the level of cash in form of
revenues and other options.
• On the other hand, the development of cash within the company will
definitely increase the development of resources that will induce the
government to improve the position and they will be able to improve
their resources.

ix) Strategies taken
• In order to increase the development of their resources, the company
will be mainly looking to indulge the development of both human
and capital resources.
• In order to increase the development of their resources, the company
will be mainly looking to indulge the development of both human
and capital resources.
• In order to increase the amount of investment the company is
minimizing the debt level by increasing debt investment ratio.

b. Operations
i) Stock level
• The company is currently having stocks of around $20, 000
• The amount of the stocks that are being stored are in the company are
getting returned to the shareholder on the circular way.

ii) Production level
• In the Y10, the company has produced about 9156 pairs of shoes.
• In the Y11, the company has produced about 9100 pairs of shoes.
Moreover, in Y2, the company is producing 8500 pairs of shoes.
• The company is actually paying more focus on the development of
resources but it is important in the sense that through the development
of better resources the company will be highly indulged in the
improvement by utilizing the amount of resources to increase the
development of better production.