Tell me about any recent financial reports you have created

.       Tell me about any recent financial reports you have created or analyzed. What were the outcomes and the different financial strategies you have recommended accordingly?

Solution

Financial reporting can be defined as the disclosure of financial performance of a company to the management and public ( for public Ltd. companies) about its financial performance over a specific period of time. it is generally issued quarterly or annually. This basically serves to core purpose. First, it helps management in making effective decision making in terms of the company\'s long term goals and overall directions. Secondly, it also provides vital information regarding the company\'s financial health to the stakeholders.

Talking about a recent financial analysis, i would like to highlight about the recent analysis of a downsized and publicly traded restaurant that serves the Seattle market. they serves a wide variety of meny of sefood, beefs and salads. The restaurant is on the verge of potential financial failure.

Analysis outcomes:

- Revenues are dropping drastically and the annual revenue is not sustainable year after year. The firm is unable to hold on to its gross profit margin.

- Operating expenses often match or exceed the gross profit margin.

- Cashflows are slightly negative over the years and working capital cash is decreasing substantially.

- Return on assets does not justify the risk of operating the business.In fact the return on book assets has averaged a negative 10% annually.

Strategies to Recover:

- The restaurant should rent out some of its part to some other parties and gain an amount annually to increase their return on asset a bit.

- They should cut down on their menu and only serve some signature dish and popular dishes. This will reduce the expenses on raw materials as well as manpower. They can also think to start with self-service, which will further cut down the costs. These efforts will reduce the operating costs.

- They should aggressively involve in promoting the restaurant and provide customers with offers to increase the sales volume.