Solvency College Essays Samples For Students

QUESTION 1

Adjusted Trial Balance
Statement of Comprehensive Income
Balance Sheet
QUESTION 2
Financial ratios
Financial analysis
Analysis of liquidity
Current ratio
At the of the financial year 2015, the current ratio for British Airways was 0.5965 indicating that its current assets could pay off 59.65% of its short-term liabilities. This further shows that the company had a low liquidity since its current assets were insufficient to meet the short-term obligations (Gibson, 2012, p. 243). The ratio declined from 0.6512 in 2014 and 0.6300 in 2013. The trend shows that the liquidity of British Airways improved in 2014 but declined in ...

Introduction

This paper explores the costing and pricing methods applicable to firms in the tourism and travel sector using Allegiant Travel Company as an example. Allegiant Travel Company is an American company providing leisure travel products and services to under-served cities in the US. It provides air transport, air transport-related products, travel protection products, hotel rooms and other third party travel products. The paper also analyses the financial statements to assess its financial state.

Costing methods

Several costing methods can be applied in the tourism industry depending on the nature of the assignment and the operations of the organization. Applicable costing methods ...

- Ability to pay long-term debt
This section uses solvency ratios to assess the ability of Qantas to repay long-term obligations and compares it with that of Fly Emirates.

Debt to total assets ratios

The ratio shows the relationship between total debt and total assets (Graham & Smart, 2011, p. 44). In the year ended June 2014, Qantas had a debt to total assets ratio of 0.8345 implying that it financed 83.45% of its total assets using debt. The ratio increased from 70.85% in 2013 to 83.45% in 2014 indicating a decline in the company’s ability to pay its long-term obligations. The high debt ratio ...

Introduction 3

Comparative Financial Performance Analysis of Pepsi and Coca Cola for the Last Two Years (2014 and 2015) through Ratios and their Interpretations 3
Analysis of Profitability Ratios 4
Gross Profit MarginW 4
Net Profit margin 5
Return on Assets 6
Analysis of Solvency Ratios 7
Current Ratio 8
Quick Ratio 9
Analysis of Capital Structure Ratios 10
Debt-to-Equity Ratio 11
Interest Coverage Ratio 12
Examination of Efficiency Ratios 14
Days Sales are Outstanding 14
Days in Inventory 15
Payables Period 16
Findings and Recommendations 17

References 20

Comparative Financial Performance Analysis of Pepsi and Coca Cola
Introduction
Because of their global ...

Company: Diageo Plc

Industry: Alcoholic Beverage Industry
Diageo Plc is a British, multinational alcoholic breweries manufacturer. The company is headquartered in London, United Kingdom and the primarily operations of the company are related to the manufacturing of alcoholic breweries which includes, wine, spirit and beer. With the market capitalization of $78 Billion, it is the eight largest company registered on the London Stock Exchange.

Diageo is also a proud owner of the leading brands in the alcohol industry as Smirnoff, Johny Walker and Guiness.

Stock Exchange Listing/ Stock Market Activity:
Diageo Plc is registered on London Stock Exchange under the ticker symbol of ‘’DGE’’. With the average volume of 622,398 shares, the company stock price is in the increasing trend. ...

Risk Management and the Global Banking Crisis: Lessons for Insurance Solvency Regulation by Simon Ashby

This journal article by Simon Ashby investigates the causes of the global banking crisis and the numerous lessons that needed to be learned from it to ensure future insurance regulation. In the paper, the author argues that the banking crisis was due to weak management policies and regulation of banks leading to problems such as poor risk management communication, over reliance on statistical risk models, and flawed compensation schemes. Due to these issues, there have been doubts expressed about the sustainability of insurance regulatory reforms. It is also recommended that more balanced insurance regulations should be implemented such that ...

Introduction

A potential buyer of a building vessel is seeking for a loan of 15 USD to cover the full price for the vessel. The market value of the vessel and the current financial crisis pose a danger to the financial institution. This is a proposal on how the bank can secure its position in this agreement.

Discussion

The market value is the highest price a buyer is willing to offer for a commodity and the lowest that a seller can accept for the commodity. Market values offer the actual financial situation surrounding a financial decision. However, during a financial crisis ...

Step 1:

b) Below provided are the Financial Statements of the company:
I Income Statement:
ii) Balance Sheet:
iii) Cash Flow Statement:
iv) Ratio Analysis:
In order to unearth the real financial position of the company we will be conducting the ratio analysis of the company, where we look into the liquidity, solvency, profitability and efficiency of the company:
-Liquidity Ratios:
Also known as Pure Balance Sheet Ratios, these ratios indicate the short term solvency of the firm, i.e. if the firm is capable enough to honor its short term commitments. Below provided are the ...

Internal Analysis of Encana

Internal Analysis of Encana

Introduction

The oil and gas industry in North America is currently experiencing challenges and transition stage. The increasing need for the environment-friendly and sustainable forms of energy is affecting the industry negatively as more governments and companies are encouraged to use energy with no or low carbon emission. More companies are now developing solar and wind energy and create vehicles that can rely on electricity rather than oil.
Such growing trend in the energy sector resulted to lower demand of oil and gas particularly in the North America. Many oil and gas producing countries and companies ...

The objective with which the report is being prepared is the financial analysis of the books of accounts and the ratios of Specialty Fashion Group, which has been listed in the Stock Exchange as a fashion house in Australia. The attempt made will be examination of necessary ratios that explain all kinds of profitability, efficiency, long term solvency, short-term solvency and the returns on shareholder’s investments (Accountingedu.org, 2016). A comparative analysis is to be made between ratios of different years to understand the rising trends and to track performance indicators. The conclusion should then bring out whether there ...

Introduction:

Bank of America is a Multinational Banking and Financial Services company headquartered in North Carolina. The Bank operates in 50 states of The United States and 40 countries around the world. The corporation came in news when it bought Merill Lynch during the financial crisis of 2008 and made it the world’s largest wealth management company. However, in order to undertake an indepth view of the corporation’s financial health, we will be conducting ration analysis of its financial statements.

Ratio Analysis

Regulatory Capital Adequacy Ratio Analysis:
Capital Adequacy ratios are calculated specifically for the banks and financial institutions. The ...

The Basel rules are recommendations developed by the BCBS (born in 1975 an organization formed by the major central banks around the world) to establish the minimum conditions that a bank should have to ensure stability.
Over the past decades the solvency conditions have been fixing and updating, and thus confirming the agreements Basel I (1988); Basel II (2004), which is in force; and Basel III, which began in 2013 with the ultimate horizon of 2019.
The Basel accords are in charge of setting the basic capital of the entities to address the risks taken by the characteristics ...

Financial Analysis: Google Inc

Introduction:
In order to ascertain the real financial position of Google Inc, we will be conducting the ratio analysis of the company for the year 2011, 2012 and 2013. As part of this analysis, we will look into the liquidity, profitability, solvency and efficiency analysis of the company and the same is detailed below:
a)Liquidity Analysis:
Also known as Pure Balance Sheet Ratios, liquidity ratios indicate the short term solvency of the company, i.e. if the company will be able to honor its short term obligations. In other words, it indicates the current working capital position ...

(Financial and SWOT analysis and Recommendation to Identified Problems)

Background

The Walt Disney Company is an American diversified firm which focuses its business in mass media where it offers licensing services for the populace to consume their products among other services. Walt Disney headquarter is at Walt Disney Studios in Burbank, California. The firm was founded on October 16th, 1923 by Walt Disney and Roy O Walt Disney in Los Angeles, California. In its most recent full year financial statements, 2015 financial statement, the firm posted a net income of US$8.38 billion, operating income of US$14.68 billion and ...

Executive Summary

The paper analyzes the financial standing of Genus PLC using time-series and cross section analysis, and through intrinsic stock valuation. Our analysis revealed that during 2015, the company recorded an astounding profitability performance although its short-term liquidity was a concern of worry on account of the declining cash position and increasing receivables. On the other hand, the company is trading with significantly lower leverage relative to the industry average, and this trend will favor the company as it is generating higher profitability with minimal risk.
In addition to the fundamental analysis, we also calculated the intrinsic stock value of ...

The financial statements analysis is a crucial practice in seeking to understand strengths and vulnerabilities. That helps identify possible risks and areas that can be leveraged for better performance. Also, it is crucial in establishing an organization’s competitiveness. In that respect, this report presents a summary of Kansas City YMCA’s financial statements analysis identifying short-term as well as long terms strengths and vulnerabilities. The report also provides an overview of the nonprofit organizations effectiveness and competitiveness.

Organization Overview

The organization identifies and responds to social needs that are critical for the people of the Kansas City since the year 1860. They ...

Introduction:

In this report, we will analyze the financial position and attractiveness of Wal-Mart’s Stock to an average investor. For this purpose, we shall conduct the ratio analysis of the company for the period of 2012, 2013 and 2014, along with comparison to the industrial average. Important to note, as part of ratio analysis we will be using five ratio sets, namely:
- Liquidity Ratios
- Profitability Ratios
- Asset Management Ratios
- Solvency Ratios
- Market Ratios
We are sure that by the end of this report and with the help of ...

The analysis of the financial statements and projections gives financial information to both internal and external users. They can be used to establish a minimum interval for which a company can internally evaluate the operating performance and the financial position to the creditors. This helps the creditors to evaluate the strengths and weaknesses of the company. The company that shows a positive performance is in a better position to exploit sources to finance the new ventures. The financial analysis shows the ability of the company to pay expenses and debts that are almost due, which increases the chances of getting external sources to ...

Price: 438.31 GBP Date: 4 May 2016

Company profile:
Aviva Plc provides insurance, savings, and investment products to over 31 million customers around the world (Aviva, 2016). Aviva is a composite insurance that combines life insurance, general insurance, and asset management (Aviva, 2016). Aviva operates worldwide with its headquarters in London United Kingdom (Yahoo! Finance, 2016).

One-year Price chart:

Figure 1: One-Year Aviva Price Chart

Source: Bloomberg

Price performance:
Valuation (by DDM and by comparables):

Analysts’ recommendation:

Introduction 3
Price performance and news analysis 3
News 4
Valuation 5
Multi-stage DDM 5
SML analysis 6
Discussion of pros and cons of the methods used for the above valuation 7
Conclusion 10

Appendix 13

Exhbit1: ...

Question 1

Within an organisation, accounting plays an active role to ensure that all business transactions of monetary value are classified, recorded, measured, summarised and reported in an accurate manner by adhering strictly to basic reporting rules such as International Financial Reporting Standards (IFRS) or US GAAP. Accounting rules make sure that financial statements are prepared and reported accurately by complying strictly with all reporting principles. Additionally, accounting steps confirm that all financial information is included in reporting mechanism while financial statements contain no error or any material misstatement having huge financial consequences.
When the industry follows one accounting mechanism, it ...

28th Februar, 2014

Financial Analysis
Answer 1)
Liquidity Analysis:
These ratios are used to judge short term solvency of a company i.e if it can honr its short term obligations. Generally two liquidity ratios are calculated:
i) Current Ratios = Current Assets/ Current Liabilities
ii) Quick Ratios= Current Assets- Inventory/ Current Liabilities
ii) Solvency Ratio:
These ratios are used to adjudge the long term solvency of the company i.e if the company can honor its long term obligations.
i) Debt to Equity Ratio: Debt/ Equity
ii) Interest Coverage Ratio: Operating Income/ Interest Expense
iii) Profitability Ratio:
...

Disclosure related to accounting policies

The company under Note 2 of the financial statement has disclosed extensive information about the accounting policies being followed by it. Following the IFRS standards for the purpose of financial reporting, each accounting policy followed and implemented in the financial reporting process has been discussed, thus providing evidence for sufficiency of the disclosure of the accounting policies.

Relevance of Segmental Information

With companies going multinational there are different segments operating under the organizational framework. Hence, in order to ensure transparency related to the financial disclosures and to adhere to the regulations of the accounting standards, the companies do report segmental information so as ...

Abstract

This paper discusses in detail a proposed change is company’s capital structure from 0 debt to 25% of the market value of the current Equity. The plan is to issue bonds for $ 3 375 000 at 9% interest and use the raised funds to repurchase 125 000 outstanding shares at the current market value of $ 27. This move will bring the total equity down from 10 000 000 to 6 625 000 and will increase the cost of equity from 11 to 13%. This will also bring our debt to equity ratio from 0 to 0.51. This level of ...

Introduction

The performance of a company is gauged by the evaluation of both qualitative and quantitative information regarding the company. Some of the qualitative information that is used in this evaluation of the company could be the experience of the management, macro and micro environment in which the company operates among other metrics.
In making a decision as to whether a company is doing well, an in-depth analysis of the company’s financial information is particularly important. The comparison of the company’s financial data with its previous year’s performance and also with its peers and industry at large would shade ...

The credit policy of a business should be customer friendly and should provide adequate time to the customer for the payment for purchase or service. To successfully manage credit, a company needs to place importance on new customers and not only focus on the old customers. It will be important to reach out to new customers who will increase their reach as well as revenue, credit management enables the company to improve on their policies and regularize the cycle of receivables. The most important part about credit management is the collection and unpaid collection. A company needs to maintain ...

Introduction

A.P Eagers ltd is a retail group trading in automotives and her main operations are based in South- East Queensland, Adelaide, Darwin, Melbourne, Sydney and the Hunter Valley in Newcastle. The business operations are centered on the ownership and operation of motor vehicle dealerships. These dealerships are concerned with a range of services that include sale of new and pre owned vehicles, service, spare parts, and customer financing facilitation.
This paper seeks to conduct an objective financial analysis (trend and ratio analyses) based on the audited financial reports of the entity for the four year period between 2011 and ...

Cheesecake Factory is a casual restaurant business company. It operates more than 200 restaurants under several brand names. The restaurants are primarily located in the United States. The company also operates a bakery that produces desserts for its own restaurants and third-party customers.
Cheesecake Factory is one of the leaders in its industry. A ratio comparison analysis that involved Cheesecake Factory and two of its competitors showed that the company has the highest profitability, solvency, efficiency and market prospect ratios. The competitors used for comparison analysis were BJ’s Restaurant and Bravo/Brio Restaurant Group.
Cheesecake Factory profitability was measured ...

About the paper

The paper is commissioned to provide a detailed analysis of Nike Inc’s stock for the client of our company. While the eventual objective is to provide a rational and non-bias recommendation on the stock to the client, however, adhering to the professional standard of performing the analysis with due diligence, selecting the stock as per client’s suitability and supporting our recommendation with appropriate research work, we aim to be comprehensive in our analysis approach while appraising the company’s stock. Therefore, before initiating the financial analysis of the company using financial ratios and stock price analysis, we ...

The NAB company name and its significance

The name of My NAB Company is “Ice Crystal”. The significance of the beverage is for everyone who enjoys the taste of ice cold and crystal clean water. The name is easy to remember it will stick to your customers. It clearly reflects the main goal of the product – refreshing and healthy experience from the ice cold and crystal clean water.

The Company’s Mission Statement

Our Mission is the production of environmentally friendly non-alcoholic beverages using advanced technology and quality standards. We are committed to providing enjoyable, healthy and refreshing experience for each customer.

Trends in the non-alcoholic beverage industry

In general, demand for mineral water is seasonal. The ...

[Date: mm/dd/yyyy]
Late development enhances the acquisition of the innovative systems due to which differed national institutions and business systems originate. The developing countries may encounter with the high cost of technology and resource utilization, however, it remains at the cost advantage in comparison with the developed countries due to low labor cost. The late developing countries acquire knowledge and experience from the developed countries due to which they originate their systems and institutions in an effective manner and thus, can boost their GDP by learning from the developed countries efficiently. The late development ensures the flow of knowledge, ...

This memo provides a detailed ratio analysis of the financial statements of the company for years 11 and 12. It compares the company’s ratios for year 12 with that of year 11 as well with industry average ratios. For this purpose, we will use the quartile industry figures as benchmarks.

Liquidity ratios

i) Current ratio
Current ratio shows the amount of current assets for every dollar of current liabilities in the company. It assesses the ability to pay short-term obligations using its current assets. It is given by dividing current assets by current liabilities. In year 12, the company had a current ...

- Introduction
Nectar Sweets Plc is a company with the main shop in Hong Kong. It is experiencing cash flow problems and is seeking an increase in the overdraft facility from the bank. Statements of the company reveal that its operations are profitable, but it is not efficient in collecting debt. The report identifies and analyses the company’s problems and recommends possible solutions. In addition, it uses financial ratios to assess the performance of the firm.
- Problems facing the company
- Nectar Sweets Plc has a problem in collection of its accounts receivables. The company takes a ...

The subject company that I chose is the Emirates Telecommunications Corporation Group. It is a limited company that is publicly listed on the Abu Dhabi Securities Exchange (ADX) as ETISALAT. The principal activities of the company are those related to telecommunications, media with related equipment, contracting, and consultation services to international telecommunications firm and consortia. Given the industry in which it does its business, 60% of its interest is controlled by the Emirates Investment Authority.
The accounting ratios and financial analysis are based on the two most recent annual reports – 2013 and 2012. Results are compared with other public ...

Financial Analysis: Caterpillar Inc

About the paper:
This paper is being commenced with the objective of conducting the financial analysis of Caterpillar Inc. The company which is one of the largest manufacturers of agricultural implements, trades on NYSE under the ticker symbol of ‘CAT’. For the purpose of conducting the financial analysis, we have divided the paper in two parts:

Part 1: This will include common-size analysis of the company’s financial statement.

- Income Statement(Horizontal Analysis): Refer to excel spreadsheet
- Balance Sheet(Vertical Analysis): Refer to excel spreadsheet

Part 2: This will include extensive ratio analysis of the financial statements under the following sections:

- Liquidity Ratios
- Profitability Ratios
- Solvency Ratios
- Efficiency Ratios
- Valuation Ratios
i)Liquidity ...

Liquidity Ratios

Liquidity Ratios measure the ability of a company to meet its short-term needs. The ratios include Current ratio and Quick ratio among others. For McDonalds, it can be seen that the Current ratio has been increasing over the past three years from 1.25 in 2011, 1.45 in 2012 and finally 1.593 in 2013. In increase in the current ratio means that the company cash sales are increasing as opposed to credit sales. Such an increase makes the business more liquid hence in a position to meet its short term obligations much better as opposed to business with current ratios of below ...

It is of common knowledge that social security, one of the most persistent and politically significant governance policies of President Franklin D. Roosevelt, is facing long run solvency problems. Policy makers are extensively acknowledging the crisis of social security system and are analytically assessing these problems along with proposing plausible solutions. This system holds an immense importance in the income structure of various economies.
As per a book written by Break (1977), the biggest threats to the social security system are demographic changes, inflation and double inflation adjustments. The demographic changes highlights the falling birthrate, which means that fewer ...

Introduction

Rolls Royse is a global leader in the provision of power systems and services at sea, on land and also in the air. Over the years, the company has established a very strong position in defense aerospace, energy and nuclear production and also civil airspace. The company is headquartered at Buckingham Gate in England but has operations in the regional offices in the US, Europe, Middle east, Asia and recently, Australia.
In evaluating the performance of Rolls Royse, we shall gather both qualitative and quantitative information regarding the company and carry out a number of operations to gauge the company’s performance. ...

Define and discuss time and space utility

Products must be transported from the place where they are produced to the place where customers demand it to be delivered. The value-add that the product gains due to its transport is called space utility. The time utility is the length of time before or between the product deliveries, which consists of mostly storage and inventory time. When the organizations are able to deliver the goods at a time they are needed, then their time utility increases.

What is the Total Cost Analysis and how does is affect logistics?

Total cost analysis provides the methodology for integration of logistics, manufacturing, and procuring costs across the network. This is done to achieve ...

This paper is a review of the book titled, Finance for nonfinancial managers: 24 lessons for understanding and evaluating financial health, by Katherine Wagner. The book will help managers from non-financial background to understand the languages and techniques used in finance. It can enhance the participation of these managers in financial matters and decision making. Complex financial lessons are presented in a form that could be understood by people from non-financial backgrounds. (Wagner, 2005)
The first chapter of the book reviews basic terms used in recording, classifying and summarizing financial transactions. Knowing these terms will help the manager to ...

Walmart is a multinational corporation with a massive presence in various parts of the globe. The company's capital structure is made up of both debt and equity funds. In a bid to achieve maximum financial and operational efficiencies, the entity has designed its capital structure to more equity and less debt financing. (Soni)
Equity capital is the primary type of capital used by the business to operate. Equity can be defined as the funding availed to the firm through the sale of share stocks and issuing the earnings attributable to the company's shareholders. The total shareholder equity held by ...

Organization Performance Using Financial Ratios

Organization Performance Using Financial Ratios
Ratio analysis refers to the process of determining, analysing and interpreting relationships by using financial statements. It is majorly used to evaluate various aspects of a firm’s financial and operating performance, such as profitability, liquidity, efficiency and solvency. The trend is then studied to determine whether they are deteriorating or improving (Nezlobin, Rajan, & Reichelstein, 2014).
Financial ratio is an indicator used to analyse firm’s financial performance. The ratios are used by the creditors, accountants, analysts, shareholders and bankers to examine and evaluate data presented on a company’s financial statements (Nezlobin, Rajan, & ...

JPMorgan Chase & Co is a commercial and an investment banking institution based in the United States. It was formed in 2000 when Chase Manhattan Corporation merged with JPMorgan & Co. It is one of the oldest and well known banking institutions in the USA and leads in investment banking, commercial banking, small businesses and financial services for its customers (Weston, Mitchell, & Mulherin, 2013).
The company operations in the recent years is characterised by increased international activities and operation in its business. It is divided on business segments on a line of business. The parent company is the head office where ...

What purpose do financial ratios serve? Why would anyone look at a ratio when analyzing a company? After all, it’s just a number. Actually, financial ratios do serve a purpose. A big purpose actually. By themselves, they don’t tell us much. But when compared against other companies and the industry as a whole, they are very valuable. But we have to remember not all industries are the same. Capital intensive industries like energy are much different than healthcare. What may be a good ratio in one may not be in another. So what can a ration tell ...

Uiversity Name

Part A:
Annuity: Stream of equal cash flows that are to be paid to an investor at equal intervals over a period of time

Present Value: Today’s value of a cash flow that is to be received at some point in the future

Future Value: Amount to which a current deposit will grow over time when invested in an interesting paying instrument.
Amortization: Periodic allocation of the cost of intangible assets owned by the company over a period of time
Debt: An amount owed by an individual or an organization to the lender. It is represented in the form of bonds, bank loan, commercial paper, et cetera
Bond: A debt instrument issued by a borrower company to the ...

Volkswagen AG

Primary activity of the company
Volkswagen AG is the second largest automobile producers in the world, headquartered in Wolfsburg, Germany. The Volkswagen group includes twelve brands: Volkswagen Commercial Vehicles, Volkswagen Passenger Cars, Ducati, SEAT, Audi, Bentley, SKODA, Porsche, Lamborghini, Bugatti, Man and Scania. The Group is the largest car manufacturer in Europe: 25, 1 % of all new cars, made in Western Europe, produced by Volkswagen. The company is operating 119 plants in 20 European countries and 11 countries in Asia, Africa and Americas, occupying approximately 13 % share in the global market of passenger cars. The production of the Group ...

About the paper

The paper is commissioned to discuss the financial standing of Google Inc. using the statement of financial position for the year 2012 and 2013. To come up with a prudent analysis, we will be using common-size analysis and some balance sheet ratios to evaluate the financial standing of the company during the year.

Balance Sheet Analysis

Referring to the common-size balance sheet attached in the appendix section, we can see that the current asset base of the company surged by 20.5% amidst a proportionate increase in all of the components of the current asset, except inventory. Most notably, the cash position increased ...

About the paper

The paper is commissioned to conduct a comprehensive financial analysis of one of the leading retail based company in Australia, Woolworths Limited. As part of this analysis, we will be using the raw financial data for the past five (5) years and will run them through the microscope of financial ratios. In addition, we will also analyze the past year trend in the stock price of the company and will unfold the major events that caused changes in the stock price of the company. The report will finally be culminated with a concise yet overall outlook for the stock ...

Gesovitz reviews Michael Tomz’s influential book on the role of reputation in sovereign debt restructuring. He argues that despite evidence to the contrary reputation theories of sovereign lending still dominate scholarly output on sovereign debt. Although, he thinks that Tomz’s theory of reputation is not fully developed and is weak, he praises the empirical nature of the book and its ability to trace the relationship between sovereign lenders and borrows for a long period of three centuries (2007). This paper seeks to review Gesovitz’s treatment of the theory of reputation in the sovereign debt market. It does ...

Financial Analysis: Nike Inc.

General Information:
1) Corporation:

Nike Inc.

2) Home City:

Oregon, United States of America

3) Current Fiscal Year End:
4) Primary Products/Services:
Nike Inc, was founded in 1971 and today, the company is the most valuable brand in the sports industry. Nike Inc. is engaged in the primary activities relating to design, devlopment and marketing of athletic shoes and apparels.
5) High-Low Selling Prices:
6) Describe Stock Price Trend: The stock price had been in the decreasing trend since beginning of 2nd quarter, however, post the beginning of 3rd quarter, a constant walk is seen in the stock prices.
7) Describe ...

The $118,650 net income indicates a successful year for Nybrostrand Company. Calculating commonly employed financial statement ratios further enhances the company’s profitability and financial strength.
The 48% gross margin ratio, computed by dividing gross profit on sales by revenue, indicates Nybrostrand will retain $0.48 from each dollar of revenue generated that will be used to cover all other expenses and a possible distribution to shareholders. This 48% gross margin eclipsed the 27% total expenses to revenue ratio enabling the successful year.
The company’s short term solvency is evidenced by a strong 1.3 current ratio. This ratio is computed ...

Members of the National Commission on Fiscal Responsibility and Reform of the United States of America have studied the economic downturn experienced by American families for a long time. They defined the reality of the problem and proposed a solution. They noted that the solution would be difficult and painful. The members consist of people with diverse backgrounds and signify diverse areas sharing a united principle that America’s long-standing financial fissure is indefensible. If the problem continues, the future generation will suffer inevitable poverty in a weak nation.
The moment of truth is a document that tackles the economic challenges faced by ...

- What is meant by traditional pension?
Since pension is defined as a fixed sum of money given to an ex-employee, usually after their retirement from service, a traditional pension plan can then be described as a retirement plan in which the employer does all the work, including the calculation and collation of the money and deciding where and how the money is invested. This type of pension plan promises an employee a certain payout once they retire, based on their salary, and the number of years they worked for.

The rapid development of the traditional pension plan was as a result of ...

In a monetary union, governments of member countries do not have their control on the currency in which they issue debt; the case is different for a non-member country, because, they are capable of issuing debt in their own currency on which the government has full control. In the article, Paul De Grauwe, has evaluated the economic position of a member (Spain) and non-member (UK) of euro-zone. The state of banking sector of UK is not much healthier than Spain, UK government has their control over their own currency on which they issue debt, whereas Spain is a member of euro-zone, and has ...

While the recession of 2008 has frightened many people because of the seeming inability of many industries to return to a pattern of growth, the widespread panic does not rival the national turmoil that took place during the Great Depression that started in 1929 and did not really end, in the sense that people went back to work in large numbers, until the start of the Second World War. The massive production spurred by that war effort started an economic boom that benefited all classes until a slowdown began in the early 1970s. At that point, a trend of income inequality began ...

Part II

Whole foods market has shown a gradual improvement in its performance in the market. From the analysis of the two previous years income statement, 2011 and 2010, there is an increase of total sales from $ 9.01 billion dollars in the year 2010 to 10.11 $ billion dollars in the year 2011. This is contributed by the increase in the number of stores opened at the end of these two fiscal years. This has lead to an increase in the firms' market share in dealing with food products. The diversification of its operations center has made the firm to enjoy the economies ...

There are several objectives that guide the setting up of these standards. Below is brief discussion on the importance of accounting standards and especially in the New Zealand context. These include:
Accounting standards usually set the minimum level of disclosure of financial information. This ensures that all interested parties and stakeholders are adequately informed of the financial happenings in a company. Well prepared financial statements will serve all stakeholders and thus they will be able to make informed choices guided by the financial statements.
These standards remove variations that may arise in the treatment of several aspects of ...