Common-size balance sheet and income statement, Financial Management

The question to be answered is : "Since the 1990 opening of stock exchanges, China started to use financial statements to determine the performance of listed companies. What were company C's performance from 2002 to 2004 and the quality of reported earnings?"

Need a detailed analysis including ratio and trend analysis. The ratio chosen must obviously relate to the trends observed - I don't need a full analysis with all the ratio, just the ones you think are relevant to what you can see from the statements. The entire analysis also needs to be done in the context of the article attached.

In terms of the part of the question that ask about the quality of reported earnings, I think that it has to do with the fact that the company applied aging method for its accounts receivable throughout 2002 and 2004, but in year 2004, it set aside Rmb2,597m as a special bad debt allowance. Because there aren't any notes attached regarding their accounting policies/ definitions etc...

Q1:  Common-size balance sheet and common-size income statement

Q2:  The change of accounting policy for accounts receivable, with a focus on 2002 through 2004 Apex.

Aging Groups

Rate

Amount

Allowance

 

 

Within 1 Y

0%

1223

0

0

0

1-2Y

10%

3520

2567

352

0.7

2-3Y

30%

34

32

10.2

0.9

3-4Y

50%

3

2

1.5

1.5

4-5Y

80%

 

 

0

0

Over 5Y

100%

5

5

5

5

Total

 

4785

2605

368.7

8.1

Net A/R

 

2180

 

4416.3

 

Schipper (1989) de?nes earnings management as a "purposeful intervention in the external ?nancial reporting process, with the intent of obtaining some private gain (as opposed to say, merely facilitating the neutral operation of the process)".

Earnings management can be defined as the adjustment of a firms' reported economic performance by insiders either to mislead some stakeholders or to influence contractual outcomes.

 

Posted Date: 2/18/2013 8:07:05 AM | Location : United States







Related Discussions:- Common-size balance sheet and income statement, Assignment Help, Ask Question on Common-size balance sheet and income statement, Get Answer, Expert's Help, Common-size balance sheet and income statement Discussions

Write discussion on Common-size balance sheet and income statement
Your posts are moderated
Related Questions
What to do to maximise profits of the company If you want to maximise profits, there are only two methods to do it. Either you decrease your expenses (also known as costs) or y

Dual Aspect Concept - Accounting Principle This is, no doubt, the basic concept in accounting.  Under this concept, each transaction has got a two-fold aspect: (i) yielding

A vailable bid capacity We saw the criterion that qualifies the bidder. Now we will learn about the bid capacity. There are chances that a bidder might acquire more contrac

using the operating cycle and any other financial management knowledge,discuss the applicability of such cycle to poultry business in Uganda(consider broilers)

Parties to Mutual Fund Trust As is common to any trust covered under the Indian Trust Act, the parties involved in a mutual fund trust are the sponsor or settler, the trustees,

a) Talk about in brief the various GAAPs that are mandatory to be followed. b) What are the several components of total cost.

Jack needs to borrow $1,000 for the next year. Bank South will give him the loan at 9 percent. Suncoast bank will give him the loan at 7 percent with a $50 loan origination fee. Fi

The credit term from the supplier is 2/30, net 60. Question: Calculate the effective annual rate if the firm does not take the discount.

#question.After read all the available information carefully, prepare a two page (double-spaced) essay and answer the following questions: Assume that we have the following data: C

You've just won a huge $100 million lottery.  You've decided to invest your winnings in the following way:  $30 million in real estate,  $30 million in  corporate bonds and $40 mil