# Accounting: Financial Statement Essay

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## Question:

Write about the Accounting for Financial Statement.

### Splitting the Investment Capital of \$100000 Between four Different Business plans

The sales from sales of the cake shop is projected to be around 1200000 in year 1, 1600000 in year 2 and 1600000 in year 3. The sales is expected to be huge during this period. Again, the net profit from this business is anticipated to be 60000 in year 1, 320000 in year 2 and 100000 in year 3. Analysis of the financial services of the accounting service business reflects the fact that the revenue from the sales is expected to be 100000 year 1, 125000 in year 2 and 150000 in year 3. In addition to this, the net profit of the accounting service business is expected to be 24675 in year 1, 33444.65 in year 2 and 42102.75 in year 3. Analysis of the financial pronouncements of Miteb’s clothing store reveals the fact that the revenue from sales of the firm is expected to be 480000 in year 1, 520000 in year 2 and 625000 in year 3. In addition to this, the financial statements of the firm also divulges the fact that the profit after tax of the firm is 6930 in year 1, 7735 in year 2 and 16275 in year 3. Analysis of key financial ratio also helps in understanding the overall financial condition of the firm. Again, analysis of the financial pronouncements of the company Second-hand goods exchange market APP replicates the fact that the expected revenue of the firm is 5475000 in year 1, 602250 in year 2 and 657000 in year 3. The net income of the firm is however expected to be 269860 in year 1, 310325 in year 2 and 8351492 in year 3. Based on the findings from the financial plans of the four different businesses it can be hereby mentioned that the APP is expected to have highest profit among the four different plans. After APP, cake shop is expected to have higher net profit followed by the accounting service business and thereafter Miteb’s Clothing Store. Thus, higher percentage of the investment capital of \$100000 need to be endowed in the businesses that has comparatively higher percentage of profits.

### Comparing and Evaluating the Operational Strategy for four Different Business Plans

Analysis of the operational strategy of Miteb’s Clothing Store reveals the fact that the management of the corporation follows a specific line of investigation into the competition. The advantage of online platform for shopping has helped the company to reach new heights of rivalry and gain advantage over the other players in the market. Again, the store needs to have effectual capacity for storage that in turn can help in maintaining requisite levels of inventory. Thus, the management follows the operational strategy of maintaining requisite inventory that can help in attain higher profitability. Thus, owner needs to have a particular reflection towards offers during the season end that can shift the leftover inventory. This in turn can lead to lowering of the overall level of the profit of the company. The management of the company devises a pricing strategy for the products that can enhance the profitability of the business of the firm.

In addition to this, operational strategy of the management of the firm Miteb’s Clothing Store also includes elaborate marketing strategy. The company can collaboratively work with other corporations and set up diverse fashion shows as well as unique events that can prove to be beneficial for both the firms. The operational plan of using the internet to reach out to higher number of clients is also part of operational strategy. In addition to this, the operational strategy of the firm also includes conduction of market research that can help the owner to comprehend as well as interpret the present style and fashion requirements of the prospective clients. Again, the operational strategy of appointment of research and development team can help in analysing the size of the market, market as well as commerce for the effectiveness in the operations of the business. The finance segment in the operational plan of the company calls for the inclusion of different financial declarations of the corporation. The financial declarations such as balance sheet, income statement are prepared based on real situations. In essence the real situations are analysed by thorough research on the market and keeping watch on competitors of the firm.

Analysis of the operational strategy of the Second-hand goods exchange market APP reveals the fact that management follows a company structure of a functional organization that is divided into accounting, marketing, post department as well as web management. For particularly the inventory, the management need to maintain medium or else higher quality as they intend to make certain that the second hand goods can be utilized. Thereafter, the price is also unlimited as per the customer as well as the supplier. Again, timeliness is not essential as the customers of APP keep their own goods. In addition to this, family primarily supplies different second hand goods as family items are replaced quickly and cannot be utilized again. The marketing plan within the operational strategy of the firm includes development of effective social media marketing using the twitter, Google Plus as well as Facebook marketing.

Evaluation of the operational strategy of the accounting service firm reflects the fact that the company provides the service of a tax agent to individual, sole trader as well as small medium sized businesses. In addition to this, this business also delivers finance services in the form of insurance and loans. Furthermore, this company also provides audit services to individual as well as businesses.

Evaluation of the operational of the cake shop reveals the fact that operational issues are present in the business. In essence, the marketing research replicates the fact that individuals are more concerned regarding credit of the business. Necessarily, this strategy of credit is supposed to attract more number of consumers. Resolving issues related to management of machine is also one of the main purpose of the operational strategy. Operational strategy of the cake shop is also to deliver high quality service to the clients through trained staffs. Marketing strategy of the corporation can be considered to be an important factor of operational policy. Risk management can also be regarded to be an important factor that can help in analysing the competitive risk, financial risk. Systematic risk. People risk, technological as well as operational risk and many others.

## Bibliography

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Grahame, S., 2014. Fundamental of Financial Accounting. Financial Management, 14719185, pp.50-51.

Henderson, S., Peirson, G., Herbohn, K. and Howieson, B., 2015. Issues in financial accounting. Pearson Higher Education AU.

Hoskin, R.E., Fizzell, M.R. and Cherry, D.C., 2014. Financial Accounting: a user perspective. Wiley Global Education.

Hoyle, J.B., Schaefer, T. and Doupnik, T., 2015. Advanced accounting. McGraw Hill.

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