Accounting and Finance

| | | | | | Financial Analysis of SimpleCo Plc. Alejandra Paola Sanchez Salinas M1004116 April 2011 Intake 1. Executive Summary This identify provides analysis and evaluation of the current situation of SimpleCo Plc. Methods of analysis hold balance sheet, income statement, immediate payment flow statement as well as ratios. Results salute that the companion is very moneymaking and attractive to shareholders, but dole out receivables are in like manner 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 donnish journals. 3. Findings 4.1. Balance Sheet, Income description and silver Flow dictation pomposity board 1: Balance Sheetof SimpleCo Plc. Notes: It is off-key that both exposit and another(prenominal) intractable assets have a life of 5 years 2 This figure shows the negative figure of the net hard currency flow The company has invested a lot in its premises, being it 54% of its replete(p) assets. It can also be noted that near of their bills comes from the issuing of ordinary shares and their earnings, representing 79% of claims.

Table 2: Income rehearsal 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 hard in fixed assets, depreciation is their highest co st, being almost 47% of amount costs, salar! ies 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 change flow from operations is low, considering the profit that the company has had, because trade receivables has absorbed more capital 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, install it on our website: OrderCustomPaper.com

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