Financial Statement Analysis Assignment

The declining graph of the profits of the organization shows the inability of the organization to increase its sales and usage of wrong marketing techniques and methods (Ahrendsen & Katchova, 2012).On an overall comparison of both the Organization it is clearly evident that, Morrison despite investing in Assets and improving business working methods, it is unable to increase its profits as well as turnover as compare to its competitive “ Tesco PLC".4) Depreciation on the Motor vehicles and on Equipment was not provided, therefore provisions have been provided for both the Assets on the rates as provided in the Adjustments entries.

The Gross profit margin of Tesco has been consistent throughout the years 20 showing the organization has not put in more efforts to increase its sales.The complete analysis of the Statement of Position made an analysis of the Assets and liabilities side, and increased the information knowledge about the Financial statements (Kemp & Waybright, 2013).Comparison of the Performances of both the Companies Tesco- Tesco is one of the biggest multinational groceries in British.2) All the operating expenses were added up than among which the following adjustment were done (Weetman, 2013) £ 8000 from rent was less because this £ 8000 pertains to the next year and was included in the trial balance.£ 1000 from Heat & Lighting was excluded as these also belong to the next year and was already included in the Heat & Lighting.And a proper financial comparison of the two big organizations can be done with the thorough analysis of various financial and others important ratios.This report will help to increase our practical knowledge aspect regarding the Accounting theories.It includes only those items which pertain to that year and the items which either is of the last year or for the next year are excluded from this statement.In the following Income Statement, following adjustments were made 1) Cost of sales was calculated by using the following formula, Opening stock Purchases- Closing stock= Cost of Sales And further was included in the income statement.In the next part, we will be analysing the Annual Report of the two big giants in the Grocery industry i.e. These are the two leading multinational groceries of the world.The thorough analysis of the Annual report along with the ratio analysis of the same will help in in-depth understanding of the actual working and finance performance of the Organizations.

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