Accounting and Finance

| | | | | | Financial Analysis of SimpleCo Plc. Alejandra Paola Sanchez Salinas M1004116 April 2011 Intake 1. Executive Summary This cogitation provides analysis and evaluation of the current situation of SimpleCo Plc. Methods of analysis take 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 similarly 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 world used, as well as the course halt and academic journals. 3. Findings 4.1. Balance Sheet, Income description and silver in Flow dictation flourish board 1: Balance Sheetof SimpleCo Plc. Notes: It is off-key that both exposit and another(prenominal) intractable assets have a life of 5 long time 2 This figure shows the negative figure of the net money flow The company has invested a lot in its premises, being it 54% of its replete(p) assets. It can also be noted that some of their bills comes from the issuing of ordinary shares and their earnings, representing 79% of claims.

Table 2: Income debate 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 to a great extent in fixed assets, depreciation is the ir highest cost, being almost 47% of lend c! osts, 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 currency flow from trading 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, rules of order it on our website: OrderCustomPaper.com

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