Abstract This paper explains if accounts and financial statements are not maintained, then a check on the company's profit and loss or simple money expenditures cannot be analyzed. The author points out that, even though a check on an organization's financial statement is kept by the accounts department, it is important that the managers understand and keep a check on these reports. The paper relates that members of a health care organization can make use of the guidelines put forward by the AICPA to evaluate the financial statements.
From the Paper "Healthcare organizations deal with a huge mass of people every day. The cash flow statements, the profit and loss account and the balance sheet unveil the potency and feebleness of such organizations. Budgeting can be easily accomplished with the help of financial statements. Budgeting allows healthcare organizations to plan and utilize people's resources, productive aptitude and finance to the fullest."
Abstract This paper explains that Ratio Analysis is an early warning indicator that enables the business owner and manager to spot trends in a business and to compare its performance and condition with the average performance of similar businesses in the same industry. The author relates that Ratio Analysis is done by comparing the specific company's ratios with the average of similar businesses and comparing the business's own ratios for several successive years, watching especially for any unfavorable trends that may be starting. The paper states that the current ratio measures the ability of the firm to pay is current bills, while still allowing for a safety margin above the required amount needed to pay current obligations.
Table of Contents
Liquidity Ratios
Current Ratio
Quick Ratio
Net Working Capital
Activity Ratios
Days Sales Outstanding
Average Payment Period
Fixed Assets Turnover
Total Asset Turnover
Inventory Turnover
Debt Ratios
Debt Ratio
Debt to Equity Ratio
Times Interest Earned
Fixed Payment Coverage Ratio
Profitability Ratios
Gross Profit Margin
Operating Profit Margin
Net Profit Margin
Return on Investment
Return on Equity
Earnings per Share
From the Paper "The ROI is determined by multiplying the Total Asset turnover by the Net Profit Margin. The figure is meaningful because it shows how well a company uses its assets to generate profits,. The basic formula is as follows:
ROI = Total Asset Turnover x Net Profit Margin
The DuPont method allows the firm to break down its return on investment into a profit on sales component and an asset efficiency component. Typically, a firm with a low net profit margin would have a total asset turnover. The relationship between the net profit margin and Total Asset turnover is largely dependent on the industry the firm operates."
Abstract This paper analyzes the specific components of the statement of changes in owner's equity and statements of cash flows from line items to balances in General Electric. The paper discusses the changes in those balances from the prior year, presents possible specific explanations for any changes from the previous year, and suggests how management can use that information in helping the business to achieve its goals.
From the Paper "General Electric still stands tall in the public's estimation and in its international reputation as a pioneer of Six Sigma management policies regarding internal quality control. (Six Sigma, 2004) According to its annual report, GE Share owners? equity increased $8.9 billion, $4.3 billion and $7.9 billion in 2002, 2001 and 2000. Thus, the performance of the General Electric company in sheer dollar terms continues to improve, not simply as a statistical blip between the current financial year and the financial year of the past, but steadily, and over time. The increases were largely attributable to net earnings of $14.1 billion, $13.7 billion and $12.7 billion. These increases were only partially offset by dividends declared of $7.3 billion, $6.6 billion and $5.6 billion in 2002, 2001 and 2000, respectively."
Abstract The overturning of the Glass-Steagall Act has spawned numerous discussions and debates concerning the resulting effects. This paper reviews literature aimed at explaining the effects the FSMA has had on the values of commercial banks, investment banks, and thrifts, as well as the of effect of deregulation on corporate customers and the conflict of interest versus certification of value debates pertaining to commercial banks operating in the securities market.
From the Paper "Studies done to date, in respect to the deregulation of commercial banks, are not sufficient and in some cases may have missed the boat. For instance, the study conducted by Czyrnik and Klein included thrift stocks (a variable of seemingly little importance) and excluded corporate customers. It would be interesting to see the results of a similar study concerning FSMA's effect on the value of corporations who use investment banks compared to those who use commercial banks for underwriting IPOs. A study of this nature would serve well to examine the possible effects of commercial banks tying investment banking to credit offerings. Another possibility for a future study would be to interview investors with question regarding their perceptions concerning conflict of interest or certification of value that may or may not attribute to commercial banks engaging in underwriting securities."
Abstract The paper discusses what interest rates are, who controls interest rates, how interest rates affect an economy, the conundrum of why 30-year interest rates have not increased in spite of all contrary experience, and a conclusion concerning whether interest rates should be increased at a measured or quick pace.
From the Paper "I wonder if when Nostradamus was predicting the end of the world and saw the world awash in flames, what he really saw was the world awash in debt. Presently, because interest rates in the United States are so low, Americans and American businesses have taken out loans at an increased rate to keep pace with their high demand of goods and services. The Bush administration's tax cuts have added fuel to this spending trend also. The purpose for these two actions was to jump start the United States economy; Policies that have been successful. The real GDP has continued to grow at a good pace and the fourth quarter of 2004 growth of 3.1 percent annual rate is an indication of this growth . But what are the consequences of this growth come?"
Abstract This paper examines how all the information accountants gather about a company is used to prepare documents referred to as financial statements and how, although there is no consensus regarding which documents are financial statements and which aren't, there are several universally accepted papers of which the income statement and the balance sheet are excellent examples. It explores different examples and uses of these financial statement, such as the cash-flow statement and the statement of capital.
From the Paper "The financial operations of a company have to be kept under strict observation. Investors need to know exactly what is the position of the company, so an objective opinion is required. This is where the auditors come in. Auditing may be defined as "a systematic process of objectively obtaining and evaluating evidence regarding assertions about economic actions and events of an economic entity to ascertain the degree of correspondence between assertions and established criteria and communicating the results to users". Of course that auditing is an expensive operation, but the safety it brings makes it worth the effort. Auditing is mandatory for certain companies, especially when the interests of a large number of people are at stake."
Abstract This paper explains that the four factors of production are land, labor, capital, and enterprise. The author points out that the Periodic Inventory System is a physical count inventory, usually made at the end of the accounting period, which does not maintain a detailed record of the actual inventory kept during the accounting period. The paper stresses that persons in charge of controlling the inventories in a business must follow certain steps and perform an accurate inventory control in order to avoid high costs due to overstocking matters.
Table of Contents
Introduction
Production Factors
What Is Inventory
Cost Associated with High Inventories
Inventory Systems
Periodic Inventory System
Perpetual Inventory System
Conclusion
Graph
From the Paper "Inventory is the value of a firm's current assets that are shown on the balance sheet, generally at cost. Inventory or merchandise inventory is generally applied to goods or materials available on hand that are held by a merchandising firm, either wholesale or retail. It includes raw materials, work in progress, and finished goods that are ready for sale, but has not been sold yet."
Abstract The thesis of this paper examines the present state of securities markets in Egypt in light of the country's needs for economic growth and analyzes their problems with the institutional measures currently existing. Following an introductory chapter on the importance of capital markets development for Egypt, especially with regard to the privatization policy currently adopted by the government, the thesis addresses the capital markets in Egypt under several points. It emphasizes the existing securities market and the securities stock exchange, with the available operations of the stock exchanges and the supply and demand of securities and the institutional investor interest in securities; determines the role of existing financial (non-banking) intermediaries as a source of capita for both the private and public sector that can be used to activate the capital market; discusses the role of the National Investment Bank (NIB) with its role as an intermediate chain between the various saving sources and the government commands, in addition to the rest of its roles; and analyzes the crucial role of the Capital Market Authority as the key organization and influence for capital markets development in Egypt. The paper also deals with the legal and tax framework, which serves as the background in which the capital market operates. Under this section, a study of the general laws that facilitate formations, operations, and issuance of securities by corporations is presented, as well as a study of the tax incentives and the financial accounting and auditing standards. In addition. the paper discusses the new capital market law.
From the Paper "In studying the failure of the Egyptian Stock Market to live up to expectations or, at the minimum, stabilize and expand to emerge as a coherent and viable economic entity, one can identify a number of causal factors, ranging from a general lack of awareness of the potentials of the stock market as an investment arena, to government interferences. While each of the many causal factors plays a significant role in explaining the stated failure, all pale in comparison to the politico-legal factors underlying that failure. Briefly and simply stated, the Egyptian stock market is subject to seemingly arbitrary investment laws which encourage neither stabilization nor investments. Over and above, the laws are constantly changed, or undergoing endless reform processes which communicate to potential investors that the market has yet to develop a tight and stable framework as would motivate investment."
Abstract As in any business, capital financing in the health care field, is very important. Without proper financial planning, budgeting and working capital, a company is headed for financial ruin. This paper shows that obtaining capital can be done in various ways and should be well planned and executed. If properly planned, a business has a good chance of survival. Without planning, bankruptcy could be the result.
From the Paper "St. Vincent's Catholic Medical Centers, a New York healthcare provider, announced that it would file Chapter 11 bankruptcy protection after losing its working capital loan. St. Vincent's defaulted on $30 million of its pre-petition loan committed by HFG (Healthcare Finance Group), which had agreed to provide a total of $100 million, in DIP (Debtor-in-Possession) financing. DIP financing is used in bankruptcy so that while the bankruptcy is being processed the business will have working capital for the duration. In many cases, DIP financing is considered attractive because it is done only under order of the Bankruptcy Court and allows the company to execute a Plan of Reorganization (POR)."
Abstract This page explains that non-profit organizations different from for-profit organizations in the way they manage their finances and provide their financial information to others because, rather than making a profit, they turn their money back into goods and services which help others, pay their employees and pay their operating expenses. The author points out five financial risks, which must be managed in a proactive manner by the board of directors. They are (1) the cost of lost opportunities, (2) financial crunches, (3) uncontrollable costs, (4) increased difficulty with recognizing revenues that meet forecasts and (5) the lack of a successful model for management. The paper stresses that the accounting differences between the two groups are (1) accounting for contributions, (2) capitalizing and depreciating assets, (3) functional expense classification and (4) use of both cash- and modified-cash basis accounting methods.
Table of Contents
Introduction
Literature Review
Analysis, Evaluation, and Critical Thinking
Summary, Conclusion, and Recommendations
From the Paper "Nonprofit organizations often do not spend enough time dealing with financial issues because they are so focused on the mission that they are sworn to uphold. However, without paying attention to the financial issues as well, these organizations can run into real trouble. They need to orient themselves to the workings of their organization, financially, and they need to develop a budget that works well for all people involved and is realistic. Without a realistic budget, the organization will likely not succeed, because there will be constant struggle and upset regarding whether issues such as bills are dealt with efficiently and properly to ensure that the organization keeps running."
Abstract There is no profession more profoundly impacted by the effects of ethical standards that the accounting profession. This paper examines how the effects of ethical and unethical behavior on independence and daily functioning are implicit in everything an individual in the accounting profession does. It also looks at how, due to recent scandals, there is a need for attention to ethical standards and training within the field of accounting.
Outline
Introduction
Analysis of Ethics in Accounting
Conclusions/Analysis
From the Paper "Accountants in particular face many ethical dilemmas during the course of their career, and example of which is the client who threatens to seek a new auditor unless offered 'perks.' Accountants and other professionals within the accounting field are often in a position that allows a great deal of autonomy and independence, which also opens the door for increased temptation and the potential for unethical behavior. Accountants may act unethically for a variety of reasons, though as the text suggests many do so for personal benefit only or selfish reasons, which by nature is a product of natural human tendencies. "
Abstract This paper presents a methodology for evaluating the financial health of a company and provides a model for determining and recommending corrective actions to management. Key profitability, asset management, liquidity and debt management ratios are analyzed. Financial performance is compared to industry and bench-marked to the industry leader. Free cash flow is calculated and analyzed. Improvement recommendations to management are made based on the analysis. Using the recommendations a pro forma income statement and balance sheet is prepared for the upcoming fiscal year.
From the Paper "The inventory turnover ratio shows how many times that inventory are sold during the year (Downes & Goodman, 1998, p. 294). The turnover ratio is slightly below the industry and the Leader Corporation. The company is carrying excessive inventory, which costs money that could be used elsewhere (p. 294). Management should evaluate the inventory control process. Minimizing inventory can reduce storage costs (warehousing) and protect the firm from falling prices (p. 294). These cost reductions will further enhance profitability. The inventory turnover ratio is projected to climb to over 13 % in 2004. This is primarily due to the reduction in inventory (loss). Management should manage the reduction in inventory gradually starting in 2002, this will allow some of the inventory to be sold vs. discarded as planned."
Abstract This paper discusses that the Sarbanes-Oxley Act of 2002 was enacted to protect investors. The author points out the advantages and disadvantages of the Act. The paper relates its implications and ethical considerations.
From the Paper "The Sarbanes-Oxley Act of is a piece of legislation enacted in July ... with the intent to protect investors by improving the accuracy and reliability of corporate disclosures made pursuant to the securities laws. Specifically, this act comprises titles with multiple sections within each title, the major provisions include the certification of financial statements by CEOs and CFOs, prohibition of personal loans to officers and directors, rapid reporting of legal inside trades, public reporting of CEO and CFO compensation, whistleblower provisions and protections, significantly longer jail sentences and larger .."
Tags: Sarbanes-Oxley, corporate responsibility, corporate governance, code of ethics
This paper is a global business plan including a budget and financial overview, a financial analysis in terms of currency risk management and financing.
Abstract This paper discusses what financial organizations and resources would be used to achieve global expansion and evaluates the financial health of the UK. The author determines potential domestic and international sources of financing for project, establishes the investment levels within assumed time-frame, estimates budget percentages and relates profits and repatriation of funds. The paper outlines a most favorable financial structure.
From the Paper "Determining the financial health of the United Kingdom, according to the "CIA World Factbook", the U. K., a leading trading power and financial center, is one of the quarter of trillion dollar economies of Western Europe. Over the past two decades, the government has greatly reduced public ownership and contained the growth of social welfare programs. Agriculture is intensive highly mechanized and efficient by European standards producing about .... of food needs with only .... of the labor force."
Tags: Global business plan, budget, financial overview, global venture, financial analysis, currency risk management, financial organizations, resources, financial health of country selected, potential domestic and international sources of financing, investment lev
Abstract This paper suggests ways in which notable piano-maker, Steinway, could benefit from activity-based costing instead of traditional cost accounting methods.
From the Paper "In traditional cost accounting, all manufacturing costs are assigned to products while non-manufacturing costs, general administrative costs, sales and marketing costs etc., are grouped into overhead which are then allocated out to products based on either labor hours or machine hours. While this system is simple, it has inherent flaws, most significant of which include the inability to determine the true cost of producing and supporting a product. This inability in turn can lead to poor strategic decisions as some products that appear profitable by traditional cost accounting..."
Tags: traditional cost accounting, activity-based costing
