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Fundamental Accounting Principles Accounting Based on Ratio Analysis Published by: https://expertassignmenthelp.com/ Filename: 1SAMPLE16C210-Fundamental-Accounting-Principles.PDF For more assistance visit: https://expertassignmenthelp.com/finance-and -accounting-assignment-help/ Uploaded: April 30, 2016 Enjoy Abstract Relate to the company management in which areas they are performing well and in which areas they need improvement. Based on above ratio analysis, AC Speed seems to follow an aggressive sales plan, wherein majority sales are on Credit. While this has boosted Current Assets (Accounts Receivable) and also Revenue, this strategy needs careful credit analysis and recovery. Credit sales may lead to the problem of bad debt which may ultimately lead to loss and bad financial performance. So management needs to look at Receivables cycle and Collectibles. The company needs to work on improving profit margins going ahead. Solvency ratio is one area where a company is performing well and it must continue to do so. Probably the company is debt averse, which explains good Debt to Assets ratio.

Fundamental Accounting Principles

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Fundamental Accounting Principles

Accounting Based on Ratio Analysis

Published by: https://expertassignmenthelp.com/

Filename: 1SAMPLE16C210-Fundamental-Accounting-Principles.PDF

For more assistance visit: https://expertassignmenthelp.com/finance-and -accounting-assignment-help/

Uploaded: April 30, 2016

Enjoy

Abstract

Relate to the company management in which areas they are performing well and in which

areas they need improvement.

Based on above ratio analysis, AC Speed seems to follow an aggressive sales plan, wherein

majority sales are on Credit. While this has boosted Current Assets (Accounts Receivable)

and also Revenue, this strategy needs careful credit analysis and recovery. Credit sales may

lead to the problem of bad debt which may ultimately lead to loss and bad financial

performance. So management needs to look at Receivables cycle and Collectibles.

The company needs to work on improving profit margins going ahead.

Solvency ratio is one area where a company is performing well and it must continue to do so.

Probably the company is debt averse, which explains good Debt to Assets ratio.