LQ—HND商务会计

1、精选文档backgroundssp plc is a company operating food manufacturing. mainly engaged in the food processing, provide all of the major supermarket chains meat and first-rate process. in the past few years the company has been difficult, because of the mad cow disease and hand, foot and mouth disease, make

2、 a reduce meat demand the product. bad performance stop in 2004 and in in part on the market from the rebound turnover by nearly 15% increase. it is expected that this rebound momentum market will gather in the coming year, the ssp plc is planning to go to greater pace, open a new processing plant i

3、n glasgow.according to the chief executive memorandum of the 30 days, this is me to 2003 and 2004 ssp plc financial condition analysis report.outlinethe main body of the report will evaluate five parts:part 1- analyze the users of financial information and the purpose of using.part 2- state of finan

4、cial source and categorize with their characteristics.part 3-explain the cash flow statement of ssp plc.analyze the recent financial performance and position of the ssp plc.(including my recommendations about how to improvement of business performance)findingssection 1.users of financial accounts.us

5、ers of financial statements is a organization or group uses information evaluation and decision making. financial information users can be divided into two categories: internal and external customers.now, i will use a watch to you the purpose and use their users of information sources reports.sectio

6、n 2. source of financesto run a business, organizations require finance for different proposes and for varying lengths of time. in finance, capital sources of different divided into two broad categories: equity capital and loan money. equity capital is by the owner and financial not interested to pa

7、y. loan capital is to point to a borrowed money from sources outside of the business. the interests of the loan capital must pay. financial aspects of the source can make clear in the short, medium and long term. refers to borrow a short-term financial no more than one year. the middle is a fund, bo

8、rrow a 2 to 10 years. long term is a fund, borrow a period of more than 10 years.in the source of case study, the ssp plc financial condition: trade creditors, tax, bank overdraft, corporate bonds, the common equity and retained profits from last year period of account.short-term sources:1. trade cr

9、editors:trade creditors are produced when the purchase of raw materials or stock isdelaying to pay, thus, there is more cash which would be used for other uses.there is also an interest free way of raising finance. however, the credit could lead to poor relations with suppliers and the customers may

10、 forfeit discounts.the credit is 544,000 in 2003 and it decreased to 405,000 in 2004. the percentage of decrease is 25.56%. the decrease of credit infers that ssp plc hasa good financial situation that it has a strong ability to pay credits back to suppliers. this could improve the relationship with

11、 suppliers.2. bank overdraft:bank account holderscan prearrange with the bank to draw cheques to agreater value than the actual balance in the account. interest should be paid by customers and bank charges will apply where an overdraftlimit has beenexceeded. bank overdraft is flexible and cheap. it

12、has a low cost. some small bank overdraft even has a free of charge.ssp plc had no overdraft but the number increased to 86,000 in 2004. the increase shows that the company borrowed money from bank for its expansion in glasgow.long-term sources:3. debentures:debentures are loans make to companies th

13、at carry a fixed rate of interest. the company s fixed assets normally secure debentures. debentures have a fixed time period or an open time period. the shareholders are not debentureholders. a debenture interest is paid as an expense not an appropriation of profit.ssp plc has a fixed debenture ( 1

14、,560,000) in the year of 2003 and 2004. it tellsus the company s fixed assets are steady.4. ordinary shares:ordinary shareholders receiving pay-outs from company after preference shareholders are paid. ordinary share dividends are not fixed and subject to company s periodical performances and decisi

15、ons of management in paying dividend.in ssp company, the ordinary share capital isn both 20,(935(0,100(2(004.it infers that the company has a steady operation situation.5. retained profitsthe retained profit is the finance brought from the last financial period. it is not fixed and may be a negative

16、 number. it presents operational situation of last period.the retained profits decreased from 505,000 to 420,000. the percentage change of decrease is 16.83%. the lower ratio shows us the company had made fewer profits in 2003 then it was in 2002.section 3. ratio analysis984,000.1. major inflows is

17、net cash flow operating activates of 1,345,000.major outflow is payments to acquire fixed assets, which takes2. ratio analysisprofitability ratios:gross profit percentage=gross profit/turnover x 100%2003: gpp= 7,000,000/ 11,674,000 x 1059%96%2004: gpp= 8,037,000/ 13,382,000 x 106003%trend: increasea

18、nalysis: the positive trend, can increase the surface inventory control the quality of meat products, or procurement policy has improved. managers should keep good momentum, continue to develop it, such as improving marketing strategy, and create better pricing strategy, inventory control or improve

19、d.net profit percentage=net profit before taxation/ turnover x 100% 2003: npp= 1,182,000/ 11,674,000 x 100%=3%2004: npp= 901,000/ 13,382x0000%=6.73%trend: decreaseanalysis: we know that although total profit increase, high operating costs much more is in 2004, it leads to reduce net profit. so the m

20、anager should think about how to reduce the operation cost, help our company make more profit.liquidity ratios:current ratio=total current assets/total current liabilities2003: cr= 1,195,000/ 767,060=2004: cr= 1,248,000/ 701,000=可编辑trend: increaseanalysis: generally speaking a healthy flow rate is a

21、t least 2:1.1.56 and 1.78 showthe company is a little more than trade, and in the meet its short-term debtdifficulties. the main reason for the increase is increase total current assets andflow down their total debt. i suggest that the company can make more profit for the short-term debt.the acid te

22、st ratio=liquid assets/current liabilities2003: ( 1,195,000 608,000)/ 767,00772004: ( 1,248,000 796,000)/ 701,0064trend: decreaseanalysis: reduce is a bad sign. this ratio should be 1:1. but than in two, in 2003 and2004 for less than one. unfortunately,this ratio is still falling. ssp plc liquidityp

23、roblemsto meet current assets to reduce. company manager should payattention to this than the development of and organization.efficiency ratios:fixed asset turnover=turnover/fixed assets2003: 11,674,000/ 4,017,00q=nes2004: 13,382,000/ 4,318,000mestrend: increaseanalysis: where this ratio gas increas

24、e, this is a good sign. it indicates that theexisting fixed assets are generating more sales and maybe investment in newfixed assets gas could be been paid off. managers of ssp plc should developand focus on it.debtors collection period=debtors/turnover x 3652003: 306,000/ 11,674,000 x 3657 days2004

25、: 452,000/ 13,382,000 x 36s33 daystrend: increaseanalysis: it is a bad sign that there is an increase in dcp .it indicates that ssp smay have a poor credit control of poor invoicing system. the bad debts mayalso increase. the leaders of ssp should check their invoicing and remindersystem to keep the

26、 ratio a proper range.investment ratios:interest cover=profit before interest & t ax/interest charges2003: 1,416,000/ 234,000=2004: 1,135,000/ 234,000=trend: decreaseanalysis: the ratio shows that the company can cover the interest expense. thedecrease is bad, because the company is not able to meet

27、 its interest. however, theproportion is in a reasonable range. leaders should try to increase a companysprofits to keep this than a high level.debt ratio=total debts/total assets x 100%20 03: ( 767,000+ 1,560,000)/(4 4,017,000+ 1,19544.65%100%=2004: ( 701,000+ 1,560,000)/(4 4,318,000+ 1,24840002 %

28、100%=trend: decreaseanalysis: this is a good sign that the increase of the proportion. however, anappropriate proportion should keep around 50%. it shows that, the ssp less responsibility or keep assets. banners/sign should be to manager.3. recommendationafter reading and analyzing three accounts fr

29、om ssp company, i found someproblems with it and now i will present my suggestions about the futuremanagement in these two parts.operational recommendationthe ratio of net percentage shows us, the ssp programmable controller (plc) in thehigh spending the operation cost. it also shows that the company has a low costcontrol. so, i suggest, the ssp should try to reduce the cost of sales and operationcosts, such as the new management system and use the contractor founddistribution channels but to find their own.financial advicefor the source of finance,