Analysis of Projects
Some of the main things and aspects from the perspective of an organization are financial competitiveness and financial belongings. As far as increasing the productivity is concerned barely those projects would have been opted which are crucial for a company as organizations constantly try to boost up their productivity (Carl S. Warren, p.14). To analyze the efficiency of two different projects in whole is the main objective of this assignment. Each of the project’s income statement has been assigned and particularly with this investigation and simultaneously the researches of both projects are stated below:
Analysis for Project-1
It is observed from the income statement analysis that by 8 different activities, revenue of the project 1 has been prepared which predominantly are:
- accommodation
- foodstuff
- beverages
- rental and other income
- other food & beverage
- telecommunication
- cancellation payment
- other operated department
In the year 2012, the total revenue producer of project-1 is $ 10,074 which in a year ago was $ 9,282, which shows expansion by 8.53%. From the accommodation, the topmost amount of revenue has been produced in the year 2012 which was $ 9,896 a main proportion of 98.23% by the overall revenue of an organization as a whole. Short amount of departmental expenses is the major advantage pertains to the corporation, which was just 16.27% against the entire revenue of the year 2012. The only basics from which cost has been acquired accordingly are accommodation and telecommunication (Eisen, p.98). Accommodation, which is generating revenue for the company of 98.23%, is only acquiring a departmental expense of just 14.20%, whereas in the year 2012, telecommunication which is generating net revenue of 27 million dollars, is acquiring $ 208 million as expense, which shows a net deficit of $ 181 million in revenue-cost analysis. Gross Profit of the corporation was $ 5,434 million in the year 2012 which improved in the fiscal year by 5.39% and it has a proportion of 53.94% against the company’s net revenue. For a company, this particular sum of Gross Profit Margin (GPM) is enormously high, as there are small numbers of companies which are containing that much GPM. If all of the debt service charges, total payroll expenses and fixed charges would have been deducted from the net income, a net loss is incurred as a result. It was affirmative in 2011 (419 million dollars) but depressing in the year 2012.
The acquiring of expense for the telecommunication department is the main problem lies in this specific income statement. It is incurring very high cost in total and the department is not contributory sufficient in revenue recognition. Related to this specific department a net deficit of 181 million dollars has been envisaged which may turn out to be a serious dilemma for the corporation in near future; hence this problem needs to be looked.
In précis, it could be declared that the Project-1 would not be valuable, as in the end of the day it would report a net loss. With the intention of attaining the best existing profit, project-1 has to reduce payroll expense a little.
Analysis of HW#3
In the year 2012 total revenue produced by HW#3 is $ 15,148 which was $ 13,565 in the preceding year, which shows an increment of 11.67%. From the accommodation, the topmost amount of revenue has been produced in the year 2012 which was $ 14,792 a main proportion of 97.65% by the overall revenue of an organization as a whole. Short amount of departmental expenses of accommodation is the major advantage pertains to the corporation, which was just 8.96% against the entire revenue of the year 2012. The only basics from which cost has been acquired accordingly are accommodation and telecommunication. . Accommodation, which is generating revenue for the company of 97.65%, is only acquiring a departmental expense of just 8.96%, whereas in the year 2012, telecommunication which is generating net revenue of 29 million dollars, is acquiring $ 198 million as expense, which shows a net deficit of $ 179 million in revenue-cost analysis (Carl Warrenm, p.121). Gross Profit of the corporation was $ 5,868 million in the year 2012 which improved in the fiscal year by 10.49% and it has a proportion of 36.74% against the company’s net revenue. For a company, this particular sum of Gross Profit Margin (GPM) is enormously high, as there are small numbers of companies which are containing that much GPM. If all of the debt service charges, total payroll expenses and fixed charges would have been deducted from the net income, a net profit is incurred as a result. In the year 2012 the net profit for HW#3 was 1,185 million dollars whereas a year ago it was 510 million dollars.
The acquiring of expense for the telecommunication department is the main problem lies in this specific income statement. It is incurring very high cost in total and the department is not contributory sufficient in revenue recognition. Related to this specific department a net deficit of 179 million dollars has been envisaged which may turn out to be a serious dilemma for the corporation in near future; hence this problem needs to be looked.
In précis, it could be declared that the HW#3 would be valuable, as in the end of the day it would report a net profit.
Works Cited
Carl S. Warren, James M. Reeve, Jonathan E. Duchac. Accounting. Chicago: Cengage Learning, 2010.
Carl Warren, James M. Reeve, Jonathan Duchac. Accounting. New York: Cengage Learning, 2010.
Eisen, Peter J. Accounting. London: Barron's Educational Series, 2007.
