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
Planning to Achieve Budget Goals: It is insufficient for an organisation or a project team to simply set budget goals and expect management and employees to work in the same ma

the stock of akpan ltd performs well during recessionary periods, and the stock of okon ltd does well during growth periods. both stocks are currently selling for Rs 100 per share

In the NPV analysis, sunk cost is not relevant whereas opportunity cost is for project evaluation. Requirements: Explain and justify the above statement about sunk cost and

Q. Find Capital allowances and associated tax benefits? It is suitable to use the after-tax cost of borrowing as the discount rate since Doe Ltd is clearly in a tax-paying situ

Describe the duties of the financial manager in a business firm? Financial managers evaluate the firm's performance, determine what are the financial consequence will be if the

Reforms and Outlook Pension funds in India is an area that is yet to be fully explored compared to those of other economies of the world. The pension reforms are expected to fa

Workers interest in participation is also influenced by certain personnel or group characteristics. For example several research studies have shown that both very low and very high

A Life Insurance Company invested $10,000,000 in pure-discount U.S. bonds in May 1995 while the exchange rate was 80 yen per dollar. The insurance company liquidated the investment

QUESTION (a) Describe briefly the main security measures to protect E-Banking systems and ensure secure E-Banking transactions. (b) (i) What is a digital certificate? (ii

Stock A has settled into a constant dividend growth pattern of 6 percent per year. The current dividend is $1.50, its current price is $15.90. You are an analyst and believe that