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Analyze financial statements in a for-profit company
Course:- Auditing
Length:
Reference No.:- EM13886017




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In your role as the financial manager, you routinely review your firm's financial statements and financial ratios to evaluate the financial health of your company.

1. How does one review and analyze financial statements in a for-profit company?

2. How does this compare to how financial statements are analyzed for a nonprofit organization?

3. Please describe the process you plan to use to conduct research, identify findings, and develop the Comprehensive Project due in Unit 5 and present a brief outline indicating how you intend to organize the project deliverable.

Please review the process and outlines of other students, providing objective feedback that will help strengthen the effectiveness of their efforts and the quality of the finished product.

So your new accountant could practice the budgeting process in your for-profit company, you want her to compare budgeting methods for two different kinds of entities.

You give her information for a for-profit and for a nonprofit entity and ask her to complete the following:

- Given the assumptions and data in this Excel file:
     - complete next year's budgeted figures for each entity within the same Excel worksheet (yellow cells)
     - include your reasoning for most of the budgeted figures (green cells)

Because of a bad recession, government grants were not cut by 50% but are eliminated completely for next year's budget and fundraising efforts-despite an increase in expenses-did not improve at all.

o Write a memo of 300-400 words explaining what you would recommend that the museum manager do.

Answered:-

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The financial analysis for profit organisation includes various steps and key technical tools. Primary amongst the same is ratio analysis which would help in determining the various items on the financial statements and their relationship with others. The ratio helps in providing a meaningful understanding of those key items and would hence help the analyst to know the real health of the concern. In addition to the same, there are analysis on trend lines and comparatives over the years. These comparative analysis would assist in the overall development and understanding of the financial information over the years.




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