This website uses cookies to ensure you have the best experience. Learn more

Revive Marketing Cash Position And Profit Analysis

826 words - 4 pages

Executive summary
Overall Revive Marketing is doing well based on the performance on its income statement, and a positive profit has been recognised. However, its cash position does not show any sign of improvement. This report discusses the reasons of this issue in two aspects, the nature of the profit figure in income statement and the accounting method has been applied in recording.
Findings can be summarized as:
- Relationship between profit and cash positions
- Pros and Cons in using accrued accounting method
Recommendations mainly focus on the delay of software update, avoid ethical problems and regularly record and review the accounting documents in order to better monitoring the ...view middle of the document...

Profit or Loss stated in income statement is relevant to expenses incurred, prepaid expenses, unearned revenue, accrued revenue and also the depreciation expenses occurred in the financial period. Thus the result combined the current operating cash inflow and outflow with the future expectation of cash movement. For example, revenue been recognised but haven’t received yet is recorded in income statement, and generates an effect on the result of profit or loss. However, it’s only being recorded based on the expectation that cash will be received in the future period. In the current financial period, it does not have any effect on cash position. By including it in income statement may drive up the profit figure due the expectation that money can be received in near future.

2.2 Accrual accounting
Accrual accounting is an accounting method used to prepare accounting documents, and the general idea of this method is to record revenues and expenses when they occurred rather than when cash exchange has been made. This method could provide a more accurate view on the company’s current financial performance, because it combines current cash inflows and outflows with expected future cash movements. On the other hand, it could also bias the true picture of the company’s performance as accounts are recorded regardless of the date of actual cash exchange.

3. Conclusion
In conclusion, based on the financial conditions of Revive Marketing, overall performance is good, expense is well-controlled and sufficient revenue has been made during financial period. However, the problem is cash level is not well...

Find Another Essay On Revive Marketing - Cash position and Profit Analysis

Ratio Analysis and Statement of Cash Flow: Wendy's vs. McDonald's

1502 words - 6 pages right. They both are very solvent. The liquidity indicators for McDonald's are very positive (quick ratio .60 and the current ratio .81) these indicators lead us to believe that if needed they can turn assets into cash very quickly. The liquidity indicators for Wendy's are (quick ratio .50 and current ratio at .67).Both corporations are profitable. While McDonald's appears to be the better run corporation with net profit margins at 11.95 % and

Ratio Analysis and Statement of Cash Flow: The Proctor and Gamble Company

1467 words - 6 pages All company accounts are prepared in accordance with the various accounting laws and regulations, and are designed for a wide audience. Therefore, to obtain data for specific purposes it is frequently necessary to submit the numbers to specific analysis. Following is an analysis of The P&G Corporation's year 2004 and 2005 financial statements. This analysis is intended to, through the calculation of ratios; assess the short-term and long

Ratio Analysis and Statement of Cash Flows for Ford and GM

936 words - 4 pages these goals, each company distributes annual financial statements. With these financial statements, each company can be measured by analyzing factors such as return on sales, current ratio, earnings per share (EPS) debt ratio, and their price-earning ratio.LiquidityLiquidity can be defined as having enough money on hand to pay bills when they are due and to take care of unexpected needs for cash, while profitability refers to the ability of business

Telstra SWOT Analysis and Marketing Strategies

2043 words - 8 pages Telstra marketing is necessary in order to improve its performance.2.0 SWOT Analysis2.1 Strengths•Telstra is one of the biggest brands in Australia and dominates the leading business position of telecommunications and information services in this country.•Telstra owns and operates an extensive network infrastructure which will give it a competitive advantage over industry rivals, whose networks fail to cover all of Australia, especially the

Analysis of Websites for Profit and Non-Profit Companies

1408 words - 6 pages The websites for profit and non-profit companies run its companies for different motives and differentiate its websites respectively, yet they use similar strategies to persuade visitors to explore its websites. Walmart, a for profit company, boasts low prices, quality goods, convenient hours, and global shopping for millions of customers searching to fulfill several of their unlimited wants and needs. Walmart’s website creates excitement in its

Analysis Of The Position Of Two Major Food Retailers Of U.K. - J Sainsbury Plc And Wm Morrison Supermarkets Plc

5422 words - 22 pages ---------------------------------54.1 Management--------------------------------------------------------- 64.2 Sectors and geography--------------------------------------------64.3 Economy---------------------------------------------------------------6Ratio analysis---------------------------------------------------------7Post Financial Statements Period------------------------------ 11SWOT

Luby's Cafeteria - Will changing the recipe improve performance? This brief case includes a SWOT analysis and recommendations for improving profit margins

1039 words - 4 pages revenue and occupancy. They can increase profit margins if operating costs can be lowered thru restructuring bonuses, centralizing purchasing and etc. Other opportunities include entering into new, less metropolitan, markets to lower fixed costs and possibly increase revenue due to less geographical competition. This can also be done by closing under performing stores to increase margins. On more of a financial note, to increase cash or capital

Winters Tee's and More: Marketing Analysis and Research

1805 words - 8 pages Winters Tee’s & More: Marketing Research Horace Winters EXD 498 Small Enterprise Planning: Business Plan Mr. Paavo Hanninen March 10, 2014  Winters Tee’s & More Marketing Analysis and Research Summary Winter’s Tees & More has been in the Chilton County area for around three years now. Our business allows customers to custom design shirts any way they would like. With the cutting edge technology we use, we offer our

Analysis Winkler A.G.'s Marketing and Manufacturing Strategies

2142 words - 9 pages Analysis Winkler A.G.'s Marketing and Manufacturing Strategies Winkler A.G. is a manufacturer of packaging materials for the grocery chain stores, electronics, food processing industries, office products and house ware products. The company is headquartered is in Berlin and they have manufacturing plants in Hamburg and Stuttgart, Germany. Manufacturing operations is broken down to 50% for 4 major customers and 50% for grocery chain and

Business Analysis: Dyson and Its Strategy for Marketing

1496 words - 6 pages . The effective corporate culture directly effects and monitor employees and their quality performance and such measures delivers to achieve the high level of profit and other economic goals of an organization for launching better and stylish technology to their end users. (Jacobs, Mannion, Davies, Harrison, Konteh, & Walshe, 2013). The CEO of Dyson believes that there is always more elastic way to have innovative strategies for the benefits of

Global Marketing: An Analysis of IKEA and Ashley Furniture Industries’ Marketing Activities

3490 words - 14 pages or adapt them for different markets. Rather, the company settles for a middle position that involves s standardizing their products to the extent possible, and adapting the products to the Chinese/Taiwanese market to the extent necessary. • Price Price is an important aspect of communication and it represents a decisive element in the interaction between buyers and sellers (Usunier, 2000). Accordingly, IKEA's marketing activities in China and

Similar Essays

Complete Business Plan For Ficticious Marketing Consultant Firm Includes Cash Budget And Statement Of Cash Flows

3288 words - 13 pages company's team, and in developing and implementing unique creative sales and marketing solutions that will enable them to position themselves out in front of the competition.We develop smart, effective marketing strategies, executing them to the highest standards of creative work, without driving you crazy or broke. We offer what we call "critical life support services" for new start-ups and emerging smaller companies. Our critical life support

Ratio Analysis And Statement Of Cash Flows Paper

1430 words - 6 pages Dell verses GatewayThe two publicly traded companies chosen were Dell and Gateway. Both of these companies are well known for their technology in the personal computer industry. Based on the ratio analysis and statements of cash flows Dell is doing better in the market than Gateway.Record global product shipments, revenue, operating and net income, earnings per share and cash from operations made Dell's fiscal year 2005 the best reporting period

An Analysis Of Procter & Gamble Equity, Cash Flow, And Notes

1982 words - 8 pages Statement of Cash Flows. These statements provide the owners and management with solid evidence and indicators about the performance of the business and it financial position in the market and whether or not the set goals are met.A Company with large investment ROI (return on investment) needs managers not to look at the present market trend and analyze the existing financial institutions. They need to be aware of comparative market on a wide scale

Equity, Cash Flow, And Notes Analysis Paper Of Samsung Electronics

1444 words - 6 pages IntroductionThe Chief Executive Officer for Samsung Electronics, Jong-Yong Yun, contacted our firm to request our service to prepare a financial overview for the record management team regarding the following segments: Statement of Changes in Owner's Equity, Statement of Cash Flows, Notes, and other Financial Information. The theme and goal for this company is to endeavor to become the best; through the spirit of excellence; however, the only