Accounting Report 2

To: Greys Travel Agent Ltd. From: Financial Accountant Date: 01June 2009 claim: Assessment of the financial position of the business and ways to rectify the business performance. The following announce leave alone provide a comprehensive financial analysis of Greys (the Company). The main cogitate will be on the companys financial position and performance and any recommendations that could be implemented in order to help the company overcome its main weaknesses. Therefore, this report will cover the difference between the bank notice and the net and loss statement for the year, an analysis of the main eyeshadeancy ratios, which will provide an insight on the financial health of the Company as vigorous as the factors that are having a major impact on the travel agency and a set of recommendations that will beneficiate the business economically as well as enhancing its managerial efficiencies. A PEST manikin will be applied relating to the financial ratios gathered that will further facilitate this investigation. 1.

Relationship between the bank quietus and profit The difference between the bank balance and the profit figure is mainly due to the fact that bank account is prepared on a cash basis, that is, cash in truth paid whereas profit and loss account is prepared on an accrual basis which therefore implies that all expenses that relates to a crabby period is accounted for in that period itself and thus appropriate adjustments are made for prepayments and accruals. 2.Analysis of the financial ratios 2.1Profitability The profitability ratios are often referred to as the operational performance ratios and give users a good understanding of the businesss ability to develop earnings as compared to its expenses and other relevant costs incurred during a specific period of time. In short, profitability ratios show how well the company utilized its resources in generating the profit and shareholder value. As illustrated in table 1, the Company has is... If you want to get a full essay, order it on our website: Ordercustompaper.com

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