美国留学生assignment代写_高分assignment写作范文
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The following six groups have been the centre of the use of financial accounting information. They include:-
1) The investors, including both equity investor and corporate bond investor of the company. Those investors could be further divided into existing and potential investors. Equity investors could be labelled with different products that they invest according to their priority in the company, i.e. it could be common stocks, or convertible securities and it could also be financial derivatives whose fundamentals are closely linked to this company.
2) The credit analysts’ group which include the banking groups’ credit officers who intentionally analyze the debt burden and forecast the future repayment capability of the firm in order to examine its creditability.
3) The equity analysts’ advisor group, including all the financial intermediaries i.e. commercial banking analysts, investment bank/securities houses analysts, economists, statisticians even involving the economics related journalists’ group.
4) Customers of the company who rely on the company’s products including both past and present.
5) The government agencies especially the taxation agencies who intend to monitor and control the taxation collection process of the commerce and business industry.
The importance of Balance Sheet and Profit & Loss Account are of vital importance because:-
The Profit and Loss Account (or P&L statement) is important because it is the company’s financial statement that indicates how the revenue is transformed into the net income, which shows to the managers and investors whether the company made or lost money during the period being reported.
In addition, the Balance Sheet is also one of the two most important accounting statements of the company as it shows what assets and liabilities a company has and how business is funded by shareholders or by liabilities. It is important in the sense that it is to provide information that is useful when assessing the financial stability of a company. Many of the financial ratios to be discussed below would use the balance sheet accounts.
2. Ratio Analysis
1) Gross profit and net profit percentage
Gross profit is the difference between the sales and the production costs excluding overhead, payroll, taxation, and interest payments. Gross profit percentage can be calculated as the amount of contribution to the firm, after paying for direct-fixed and direct-variable unit costs, required to cover overheads (fixed commitments) and provide a buffer for unknown items. It expresses the relationship between gross profit and sales revenue. It is a measure of how well each dollar of a company's revenue is utilized to cover the costs of goods sold.
Net profit is also a good measure of profitability, and it is calculated by finding the net profit (usually after tax) as a percentage of the revenue.
These two profit margins are both very important as they provide a good indicator for the company’s pricing policies to ensure that it is able to control costs and deliver a good return on the sales activities. Therefore, it is indeed important for equity inv
