Chee Foong Case Study
Chee Siew Foong
BSBFIA402
Assessment task 3
This report includes budget analysis, ration calculations to analyze the organization’s financial performance and gives recommendations through calculations.
Last year gross profit equals $163,385 and the previous years’ gross profit was $114,370. The gross profit growth is 46.86% which higher than the previous year gross profit growth which was 25%.
The current ratio= current asset/ current liabilities
=104,476/68,574= 1.5
The higher the ratio, the more able a company is to pay off its obligations. While acceptable ratios vary depending on the specific industry, a ratio between 1.5 and 3 is generally considered healthy.
Accounts receivable turnover= net credit sales/ average accounts receivables=
BSBFIA402
Assessment task 3
This report includes budget analysis, ration calculations to analyze the organization’s financial performance and gives recommendations through calculations.
Last year gross profit equals $163,385 and the previous years’ gross profit was $114,370. The gross profit growth is 46.86% which higher than the previous year gross profit growth which was 25%.
The current ratio= current asset/ current liabilities
=104,476/68,574= 1.5
The higher the ratio, the more able a company is to pay off its obligations. While acceptable ratios vary depending on the specific industry, a ratio between 1.5 and 3 is generally considered healthy.
Accounts receivable turnover= net credit sales/ average accounts receivables=