Managerial Accounting and Business Analysis Essay

Managerial Accounting and Business outline - Essay Example220.65Over draft fix Balance &cash carbon 354.01 1701.67 supply stream assets 100 133.05 65.96Total fixed assets 100 377.74 187.27Total assets 100 56,91 66.17Account payables 100 117.67 0.32Retained income100216.71130.16Total liabilities and equity 100 156.68 188.85Income Report for Bell way PlcFigures in million of pounds2003 000 00020042005Turnover954,1971,092,5711,178,063 staring(a) Income 739,479829,598280,402Trading income 172,762213,277229,448Interest received 1,4271,3612,267Earnings before interest and tax 169,251205,530218,163Interest paid 5,81110,47713,474 receipts 50,68761,70065,400Earnings after tax 169,251205,530 152,763Dividends 24,16629,86437,137Retained income for the year 94,398113,971115,620Balance sheet for Bell way Plc.200320042005Assets16,20016,67316,203 occupation478,935587,635Over draftBank Balance &cash 3,4684,926 703,048 Total current assets 482,327590,246697,649Total fixed assets 16,20016,200697,64 9Total assets 482,327590,246 681,446Account payablesRetained income 94,398113,971115,626Total liabilities and equity482,327590,246 697,649If the above results are converted into indexed values form the interest results can be obtained.2003 20042005Assets100 102.47 109.26 Stock 100 119.56 145.27Account receivables 100100100 Over draftBank Balance &cash 100 135.83... Recommendation according to horizontal analysis Though the investment closing cannot be taken only on comparison it can serve as one of the criteria. In case of two companies the profits and turnover had shown a trend of increase. The total current assets of the Telford was not showing consistent trend when compared to Bell way Plc. The account payables in the 2006 were less for Telford and thus it maintained a increase trend in profit. But the decrease in account payables may show proceed in the coming year and the increase trend may not be this much stronger. In contrast to Telford the Bell way was increasing the cu rrent assets along with account payables done and still maintaining the increasing trend of profit. This tells us about the good marketing, payment, asset increasing and profit retaining strategies and according to comparison it is better(predicate) to invest in Bell WayAccording to vertical analysis the items in the income account were metrical as the percentage of turnover. This tells us about the well-grounded and unhealthy trends of profit making, the company is experiencing.In vertical analysis it can be observed that the bank balance, current assets were not following a healthy trend in case of Telford Plc. The liquidation of assets was maintained as cash in telford.