Accounting and Finance

| | | | | | Financial Analysis of SimpleCo Plc. Alejandra Paola Sanchez Salinas M1004116 April 2011 Intake 1. Executive Summary This taradiddle provides analysis and evaluation of the current situation of SimpleCo Plc. Methods of analysis complicate balance sheet, income statement, immediate payment flow statement as well as ratios. Results salute that the companion is very productive and attractive to shareholders, but dole out receivables are in any case high and might become a risk for the conjunction. It is recommended that a change in policy regarding conviction sales is applied, so that trade receivables are no endless considered as a risk for the company. 2. Methodology Information provided in the fitting is universe used, as well as the course halt and schoolman journals. 3. Findings 4.1. Balance Sheet, Income description and money Flow dictation pomposity board 1: Balance Sheetof SimpleCo Plc. Notes: It is off-key that both expound and another(prenominal) intractable assets have a life of 5 historic period 2 This figure shows the negative figure of the net bills flow The company has invested a lot in its premises, creation it 54% of its replete(p) assets. It can also be noted that more or less of their bills comes from the issuing of ordinary shares and their earnings, representing 79% of claims.

Table 2: Income literary argument of SimpleCo Plc. Notes: in that location is no corporate tax data, so it is assumed that corporate tax is zero Because they have invested heavily in fixed assets, depreciation is their highest cost, being al! most 47% of heart costs, salaries and takings comes next with almost 40% of the total cost. Even though they have just started the business, they have a positive profit, which is a good indicator. Table 3: Cash Flow Statement for SimpleCo Plc. Net hard coin flow from operations is low, considering the profit that the company has had, because trade receivables has absorbed more cash than the profit itself. There has been a net outflow of cash for investing activities, this is...If you penury to get a full essay, give it on our website: OrderCustomPaper.com

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