Managerial Accounting and Business Analysis Essay

Managerial Accounting and Business Analysis - Essay Example220.65Over draft margin Balance &cash vitamin C 354.01 1701.67 Total current assets atomic number 6 133.05 65.96Total fixed assets degree centigrade 377.74 187.27Total assets 100 56,91 66.17Account payables 100 117.67 0.32Retained income100216.71130.16Total liabilities and equity 100 156.68 188.85Income Report for bell shape mood PlcFigures in million of pounds2003 000 00020042005Turnover954,1971,092,5711,178,063 Gross Income 739,479829,598280,402Trading income 172,762213,277229,448 interestingness received 1,4271,3612,267Earnings before interest and tax 169,251205,530218,163Interest paid 5,81110,47713,474Taxation 50,68761,70065,400Earnings after tax 169,251205,530 152,763Dividends 24,16629,86437,137Retained income for the year 94,398113,971115,620Balance sheet for Bell way Plc.200320042005Assets16,20016,67316,203Stock478,935587,635Over draftBank Balance &cash 3,4684,926 703,048 Total current assets 482,327590,246697,649 Total fixed assets 16,20016,200697,649Total assets 482,327590,246 681,446Account payablesRetained income 94,398113,971115,626Total liabilities and equity482,327590,246 697,649If the above results are converted into indexed set form the pursual results can be obtained.2003 20042005Assets100 102.47 109.26 Stock 100 119.56 145.27Account receivables 100100100 Over draftBank Balance &cash 100 135.83... Recommendation correspond to horizontal analysis Though the investment decision cannot be taken only on comparison it can serve as one of the criteria. In case of two companies the profits and turnover had shown a trend of increasing. The total current assets of the Telford was not showing consistent trend when compared to Bell way Plc. The account payables in the 2006 were less for Telford and thus it maintained a increase trend in profit. But the decrease in account payables may show affect in the coming year and the increase trend may not be this much stronger. In contrast to Telfor d the Bell way was increasing the current assets along with account payables done and still maintaining the increasing trend of profit. This tells us about the good marketing, payment, asset increasing and profit retaining strategies and according to comparison it is advisable to invest in Bell WayAccording to vertical analysis the items in the income account were calculated as the percentage of turnover. This tells us about the healthy and unhealthy trends of profit making, the company is experiencing.In vertical analysis it can be observed that the bank balance, current assets were not following a healthy trend in case of Telford Plc. The liquidation of assets was maintained as cash in telford.