HND商务会计高级outcome 3 4 5报告答案.docx

HND商务会计高级outcome 3 4 5报告答案.docx

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HND商务会计高级outcome345报告答案

Indexpage

Indexpage………………………………………..….

Introduction………………………………………….

Background………………………………………..…

Findings

Section1…………………………………………

Section2…………………………………………

Section3…………………………………………

Conclusion…………………………………………..

Reference…………………………………………….

Introduction

Background

SSPplcisacompanyoperatinginthefoodmanufacturingindustry.Itisengagedinfoodprocessing,supplyingallthemainsupermarketchainswithfirstclassprocessmeatproducts.DuringthelastfewyearsthecompanyhasbeendifficultbecauseoftheBSEandFootandMouthdiseasemadeadecliningdemandformeatproduct.Thebadoutstandingachievementstoppedin2004andapartialreboundinthemarketproducedanincreaseinturnoverbynearly15%.ItisexpectedthatthisreboundinthemarketwillgathermomentumoverthecomingyearandtheSSPplcisplanningtotakeevengreaterstridesforwardbyopeninganewprocessingplantinGlasgow.

Asrequestedinthechiefexecutive’smemoof30December,hereismyreportsummarisingandanalysisingthefinancialpositionoftheSSPplcfortheyear2003and2004.

Outline

Themainbodyofthereportwillevaluatefiveparts:

Part1---Analyzetheusersoffinancialinformationandthepurposeofusing.

Part2---Stateoffinancialsourceandcategorizewiththeircharacteristics.

Part3---ExplainthecashflowstatementofSSPplc.

AnalyzetherecentfinancialperformanceandpositionoftheSSPplc.

（Includingmyrecommendationsabouthowtoimprovementofbusinessperformance）

Findings

Section1.Usersoffinancialaccounts.

Usersoffinancialstatementsareagroupofpeopleororganizationswhousetheinformationtomakeevaluationsanddecisions.Usersoffinancialinformationcanbedividedintotwocategories:

internalandexternalusers.

Now,Iwilluseatabletoshowyoutheusers’purposeandsourcesofinformationtheyusetogetthestatements.

Section2.Sourceoffinances

Torunabusiness,organizationsrequirefinancefordifferentproposesandforvaryinglengthsoftime.Inthefinance,wedividesourcesofcapitalintotwocategories:

equitycapitalandloancapital.Equitycapitalisthefinanceprovidedbytheownerandthereisnointeresttopay.Loancapitalreferstomoneythatisborrowedfromasourceoutsidethebusiness.Theinterestofloancapitalmustbepaid.Sourcesoffinancescouldbeclarifiedintoshort,mediumandlongterm.Theshort-termreferstofinancethatareborrowedforaperiodofnomorethanoneyear.Themedium-termreferstofundsthatareborrowedforaperiodofbetweentwoandtenyears.Long-termreferstofundsthatareborrowedforaperiodofmorethantenyears.

Inthecasestudy,thesourceoffinancesofSSPplcis:

tradecreditors,tax,bankoverdraft,debentures,ordinarysharecapitalandtheretainedprofitsfromlastaccountperiod.

Short-termsources:

1.Tradecreditors:

Tradecreditorsareproducedwhenthepurchaseofrawmaterialsorstockisdelayingtopay,thus,thereismorecashwhichwouldbeusedforotheruses.Thereisalsoaninterestfreewayofraisingfinance.However,thecreditcouldleadtopoorrelationswithsuppliersandthecustomersmayforfeitdiscounts.

Thecreditis£544,000in2003anditdecreasedto£405,000in2004.Thepercentageofdecreaseis25.56%.ThedecreaseofcreditinfersthatSSPplchasagoodfinancialsituationthatithasastrongabilitytopaycreditsbacktosuppliers.Thiscouldimprovetherelationshipwithsuppliers.

2.Bankoverdraft:

Bankaccountholderscanprearrangewiththebanktodrawchequestoagreatervaluethantheactualbalanceintheaccount.Interestshouldbepaidbycustomersandbankchargeswillapplywhereanoverdraftlimithasbeenexceeded.Bankoverdraftisflexibleandcheap.Ithasalowcost.Somesmallbankoverdraftevenhasafreeofcharge.

SSPplchadnooverdraftbutthenumberincreasedto£86,000in2004.TheincreaseshowsthatthecompanyborrowedmoneyfrombankforitsexpansioninGlasgow.

Long-termsources:

1.Debentures:

Debenturesareloansmaketocompaniesthatcarryafixedrateofinterest.Thecompany’sfixedassetsnormallysecuredebentures.Debentureshaveafixedtimeperiodoranopentimeperiod.Theshareholdersarenotdebentureholders.Adebentureinterestispaidasanexpensenotanappropriationofprofit.

SSPplchasafixeddebenture（£1,560,000）intheyearof2003and2004.Ittellsusthecompany’sfixedassetsaresteady.

2.Ordinaryshares:

Ordinaryshareholdersreceivingpay-outsfromcompanyafterpreferenceshareholdersarepaid.Ordinarysharedividendsarenotfixedandsubjecttocompany’speriodicalperformancesanddecisionsofmanagementinpayingdividend.

InSSPCompany,theordinarysharecapitalis£1,950,000inboth2003and2004.Itinfersthatthecompanyhasasteadyoperationsituation.

3.R