HND商务会计高级outcome345报告答案

IndexpageIndexpageIntroductionBackgroundFindingsConclusionReference•IntroductionBackgroundSSPplcisacompanyoperatinginthefoodmanufacturingindustry.Itisengagedinfoodprocessing,supplyingallthemainsupermarketchainswithfirstclassprocessmeatproducts.DuringthelastfewyearsthecompanyhasbeendifficultbecauseoftheBSEandFootandMouthdiseasemadeadecliningdemandformeatproduct.Thebadoutstandingachievementstoppedin2022andapartialreboundinthemarketproducedanincreaseinturnoverbynearly15%.ItisexpectedthatthisreboundinthemarketwillgathermomentumoverthecomingyearandtheSSPplcisplanningtotakeevengreaterstridesforwardbyopeninganewprocessingplantinGlasgow.Asrequestedinthechiefexecutivesmemoof30December,hereismyreportsummarisingandanalysisingthefinancialpositionoftheSSPplcfortheyear2022and2022.OutlineThemainbodyofthereportwillevaluatefiveparts:Part1---Analyzetheusersoffinancialinformationandthepurposeofusing.Part2---Stateoffinancialsourceandcategorizewiththeircharacteristics.Part3---ExplainthecashflowstatementofSSPplc.AnalyzetherecentfinancialperformanceandpositionoftheSSPplc.(Includingmyrecommendationsabouthowtoimprovementofbusinessperformance)FindingsUsersoffinancialaccounts.Usersoffinancialstatementsareagroupofpeopleororganizationswhousetheinformationtomakeevaluationsanddecisions.Usersoffinancialinformationcanbedividedintotwocategories:internalandexternalusers.Now,Iwilluseatabletoshowyoutheusers'purposeandsourcesofinformationtheyusetogstatements.SourceoffinancesTorunabusiness,organizationsrequirefinancefordifferentproposesandforvaryinglengthsoftime.Inthefinance,wedividesourcesofcapitalintotwocategories:equitycapitalandloancapital.Equitycapitalisthefinanceprovidedbytheownerandthereisnointeresttopay.Loancapitalreferstomoneythatisborrowedfromasourceoutsidethebusiness.Theinterestofloancapitalmustbepaid.Sourcesoffinancescouldbeclarifiedintoshort,mediumandlongterm.Theshort-termreferstofinancethatareborrowedforaperiodofnomorethanoneyear.Themedium-termreferstofundsthatareborrowedforaperiodofbetweentwoandtenyears.Long-termreferstofundsthatareborrowedforaperiodofmorethantenyears.Inthecasestudy,thesourceoffinancesofSSPplcis:tradecreditors,tax,bankoverdraft,debentures,ordinarysharecapitalandtheretainedprofitsfromlastaccountperiod.Short-termsources:Tradecreditors:Tradecreditorsareproducedwhenthepurchaseofrawmaterialsorstockisdelayingtopay,thus,thereismorecashwhichwouldbeusedforotheruses.Thereisalsoaninterestfreewayofraisingfinance.However,thecreditcouldleadtopoorrelationswithsuppliersandthecustomersmayforfeitdiscounts.Thecreditis544,000in2022anditdecreasedto405,000in2022.Thepercentageofdecreaseis25.56%.ThedecreaseofcreditinfersthatSSPplchasagoodfinancialsituationthatithasastrongabilitytopaycreditsbacktosuppliers.Thiscouldimprovetherelationshipwithsuppliers.Bankoverdraft:Bankaccountholderscanprearrangewiththebanktodrawchequestoagreatervaluethantheactualbalanceintheaccount.Interestshouldbepaidbycustomersandbankchargeswillapplywhereanoverdraftlimithasbeenexceeded.Bankoverdraftisflexibleandcheap.Ithasalowcost.Somesmallbankoverdraftevenhasafreeofcharge.SSPplchadnooverdraftbutthenumberincreasedto86,000in2022.TheincreaseshowsthatthecompanyborrowedmoneyfrombankforitsexpansioninGlasgow.Long-termsources:Debentures:Debenturesareloansmaketocompaniesthatcarryafixedrateofinterest.Thecompanyassetsnormallysecuredebentures.Debentureshaveafixedtimeperiodoranopentimeperiod.Theshareholdersarenotdebentureholders.Adebentureinterestispaidasanexpensenotanappropriationofprofit.SSPplchasafixeddebenture(%,560,000)intheyearof2022and2022.Ittellsusthecompany"sfixedassetsaresteady.Ordinaryshares:Ordinaryshareholdersreceivingpay-outsfromcompanyafterpreferenceshareholdersarepaid.Ordinarysharedividendsarenotfixedandsubjecttocompany"periodicalperformancesanddecisionsofmanagementinpayingdividend.InSSPCompany,theordinarysharecapitalis1,950,000inboth2022and2022.Itinfersthatthecompanyhasasteadyoperationsituation.RetainedProfitsTheretainedprofitisthefinancebroughtfromthelastfinancialperiod.Itisnotfixedandmaybeanegativenumber.Itpresentsoperationalsituationoflastperiod.Theretainedprofitsdecreasedfrom505,000to420,000.Thepercentagechangeofdecreaseis16.83%.Thelowerratioshowsusthecompanyhadmadefewerprofitsin2022thenitwasin2022.Section3.RatioAnalysisMajorinflowsisNetcashflowoperatingactivatesof1,345,000.£MajoroutflowisPaymentstoacquirefixedassets,whichtakes984,000.£RatioAnalysisProfitabilityRatios:GrossProfitPercentage=Grossprofit/Turnoverx100%2022:GPP=7,000,000/11,674,000x100%=59.96%2022:GPP=8,037,000/15382,000x100%=6006%Trend:IncreaseAnalysis:Theincreaseofratioisagoodsign.Thepositivetrendcanbeanindicationthatstockcontrolofmeatproducthasimproved,demandforthemeatproducthasincreasedafterthediseases,orpurchasingpolicieshaveimproved.Themanagersshouldkeepthegoodtrendandgoondevelopit,suchasimprovingmarketingstrategy,settingbetterpricingpolicy,orimprovingstockcontrol.NetProfitPercentage=NetProfitbeforeTaxation/Turnoverx100%2022:NPP=£,182,000/11,674,000x100%=10.13%2022:NPP=901,000/13,382,000x100%=6.73%Trend:DecreaseAnalysis:Thedecreaseoftheratioisabadsignthatitindicatesalowprofitofthecompany.FromtheP&LAccountoftheSSPplc,weknowthatalthoughthegrossprofitincreased,theoperationcostismuchhigherin2022;itleadstoadecreaseinnetprofit.Sothemanagersshouldthinkabouthowtodecreaseouroperationcosttohelpourcompanyearnmoreprofit.LiquidityRatios:CurrentRatio=TotalCurrentAssets/TotalCurrentLiabilities2022:CR=1,195,000/767,000=1.562022:CR=1,248,000/701,000=178Trend:IncreaseAnalysis:theincreaseofratioisagoodsign.Generallyspeakingahealthycurrentratioisatleast2:1.The1.56and1.78indicatethecompanyisalittlebitovertradingandhavedifficultyinmeetingitsshort-termdebts.Themainreasonfortheincreaseistheincreaseinthetotalcurrentassetsanddecreaseinthetotalcurrentliabilities.Isuggestthatthecompanymaykeepmoreprofitfortheshort-termdebts.TheAcidTestRatio=LiquidAssets/CurrentLiabilities2022:(1,95,000-608,000)/767,000=0772022:(1,248,000-796,000)/701,000=064Trend:DecreaseAnalysis:Thedecreaseisabadsign.Theratioshouldbe1:1.Buttheratioinbothof2022and2022islessthat1.Andunfortunately,theratioisstilldecreasing.SSPplcmeetsaliquidityproblemthattheliquidassetsdecrease.Thecompanymanagersshouldpayattentiontothisratioandorganization'sdevelopment.EfficiencyRatios:FixedAssetTurnover=Turnover/FixedAssets2022:14,674,000/4,017,000=2.91times2022:13,382,000/4,318,000=3.10timesTrend:IncreaseAnalysis:Wherethisratiogasincrease,thisisagoodsign.Itindicatesthattheexistingfixedassetsaregeneratingmoresalesandmaybeinvestmentinnewfixedassetsgascouldbebeenpaidoff.ManagersofSSPplcshoulddevelopandfocusonit.DebtorsCollectionPeriod=Debtors/Turnoverx3652022:306,000/11,674,000x365=9.57days2022:452,000/13,382,000x365=12.33daysTrend:IncreaseAnalysis:ItisabadsignthatthereisanincreaseinDCP.ItindicatesthatSSPsmayhaveapoorcreditcontrolofpoorinvoicingsystem.Thebaddebtsmayalsoincrease.TheleadersofSSPshouldchecktheirinvoicingandremindersystemtokeeptheratioaproperrange.InvestmentRatios:InterestCover=ProfitBeforeInterest&Tax/InterestCharges2022:1,416,000/234,000=6052022:1,135,000/234,000=4.85Trend:DecreasespreAnalysis:Thisratioshowshowcapablethecompanyisofcoveringitsinterestcharges.Thedecreaseisnotgoodbecausethecompanyislessabletomeetitsinterestpayments.Buttheratioisstillinareasonablerange.Leadersshouldtrytoincreasecompanyratioahighlevel.DebtRatio=TotalDebts/TotalAssetsx100%2022:(767,000+1,560,000)/(4,017,000+件195,000)x100%=44.65%2022:(701,000+1,560,000)/(4,318,000+1,248,000)x100%=40.62%Trend:DecreaseAnalysis:Itisagoodsignthattheratioincreased.However,ahealthyratioshouldkeeparound50%.ItindicatesthatSSPhasfewerliabilitiesorkeepsmoreassets.Thesignshouldbekeptbymanagers.RecommendationAfterreadingandanalyzingthreeaccountsfromSSPCompany,IfoundsomeproblemswithitandnowIwillpresentmysuggestionsaboutthefuturemanagementinthesetwoparts.OperationalrecommendationAratioofNetProfitPercentageshowsusthatSSPplchasahighexpenditureinoperationcost.Italsoindicatesthatthecompanyhasalowlevelofcostcontrol.Therefore,IsuggestthatSSPshouldtrytodecreasethecostsofsalesandtheoperationcost,suchasadoptingnewmanagementsystemandusingcontractorstofinddistributionchannelsbuttofindthemitself.FinancialrecommendationForthesourceoffinance,SSPhasabadperformanceoffinancialoperating.IntheCashFlowStatement,theFinancingis珀,butthecompanyisplanningexpansioninGlasgow.Themaininflowofthecompanyisthesales.Itisadangerousphenomenonifthecompanywantstousetheturnovertoexpanseitsbusinessbecauseitisimpossibletousethecurrentcashtosupportlong-terminvestment.SoIsuggestthatthecompanymayincreasethenumberofsharecapitalormakemoredebenturestogetmorelong-termcapitalforexpansion.ConclusionByanalyzingtheP&LAccount,BalanceSheetandCashFlowStatement,wecaninferthatSSPplchasagoodoperationalperformance.However,therearestillmanypartstoimproveanddeveloptohelpthecompanymaximizeprofits.ReferenceRayH.Garrison,ManagerialAccounting,BusinessPublicationsInc.,1985,PrintedinU.S.A.J.R.DYSON,AccountingforNon-accountingStudents,FinancialTimes,2022,PrintedinGreatBritain.FrankWood&AlanSangster,BusinessAccounting2,FinancialTimes,PitmanPublishing,1999,PrintedinChina.