>> Accounting Basics
Accounts - Interpreting Final Accounts Assignment -
Description of Assignment -
Background and Brief: The results of a business's activities are presented in financial terms in the form of financial statements ('accounts').
Businesses produce statements of their financial results for a number of reasons:
a) To comply with the law
b) To inform people who are interested in the company about its situation
c) To help management in managing the company
The Golden Globe Company Limited (TGGC Ltd) owns and runs 20 Golden Globe garden centres across the South of England, from Devon to Kent. The business was established 20 years ago and store numbers have increased gradually, however no new stores have been opened since 2009 due to the recession in the UK. The Board of TGGC Ltd believe that the economic recovery has started and have plans to expand by opening a further 10 stores in the Midlands and Wales.
Your brief is to provide new managers at TGGC Ltd with an understanding of financial information and how it reflects business performance and efficiency. You are to highlight the financial issues the business needs to consider before any expansion takes place and offer practical remedial actions.
Task: Using the financial information provided (see in attached file), you are required to write a business report (max 1,000 words) to the Board addressing the following areas:
1. Use percentages and ratios to accurately calculate profitability, liquidity, efficiency and financial position.
2. Explain the financial activity and trends of TGGC over the past two years from the results of your calculations and the accompanying notes and information given.
3. Identify any problems that have been revealed from the above.
4. Suggest practical remedial actions that the Board of Directors could take to improve their financial position.
Note: All calculations and workings should be reported in the Appendices to the report.
Attachment:- Interpreting Final Accounts Assignment File.rar