Accounting for Business

Question: Discuss about the Financial Statement Analysis. Answer: Introduction The main purpose of the assignment is to bring out the financial statement analysis figures of BWX Limited. BWX is vertically integrated body, hair as well as skin care company with Head Office located in South Victoria of Melbourne (Williams 2012). It operates in core activities like new product development as well as manufacturing activities; BWX is the owner, distributor as well as producer of top brands namely Sukin, Uspa as well as Edward Beale and Renew Skincare. Financial Statement Analysis Identifying balance sheet figures of BWX Limited Current Assets of BWX Limited Current assets indicate in the balance sheet statement of BWX Limited. It helps in representation of values of assets at particular time. Some of the current account figures include accounts receivables, cash equivalents, stock and prepaid expenses (Epstein and Lee 2011). BWX Limited 2014 ($ Million) 2015 ($ Million) Current Assets 36857 38822 Table: Current Assets of BWX Limited This particular analysis is presented in form of tables and graphs that represents total current assets of BWX Limited from the year 2014 and 2015. In the year 2014, total current assets arise at 36857 and 38822 in the year 2015. On critical analysis, it is noticed that total current assets increases in between two years on company BWX Limited (Duska, Duska and Ragatz 2011). Increased current assets in the recent financial year depicts that BWX Limited can manage with the expenses and pay out for day-to-day running of business organization in certain way. It ensures meeting short-term obligations of BWX Limited for smooth functioning of business organization. Non-Current Assets of BWX Limited Non-current assets indicate assets in case of unrestricted cash for given period up to one year. It comes under balance sheet figures for specified time. It reports under headings including PPE intangibles for future analysis purpose. BWX Limited 2014 ($ Million) 2015 ($ Million) Non-Current Assets 26780 29969 Table: Non-Current Assets of BMX Limited This particular analysis is presented in form of tables and graphs that represents total non-current assets of BWX Limited from the year 2014 and 2015. In the year 2014, total non-current assets arise at 26780 and 29969 in the year 2015. On critical analysis, it is noticed that total current assets increases in between two years on company BWX Limited. Increase in non-current assets reveals the fact that BWX Limited has the ability in converting long-term assets in the near future (Deegan and Unerman 2011). Current Liabilities of BWX Limited It is important to understand the term current liabilities as it reveals obligations for period less than one year at specified date. Current liabilities indicate in the liabilities section of balance sheet statements. It initiates creation of liabilities for future analysis purpose. BWX Limited operates in cycle for a period longer than 1 year. It indicates ways in form of principal portion shown in the notes payable section for one year time (Davies and Crawford 2012). Current liabilities figures include accounts payable, sundry creditors and accrued expenses at the same time. It involves specified parties that owes current liabilities as well as referred in form of creditors in an overall manner. Most of the creditors shows lien in case of current assets in response with secured creditors. BWX Limited 2014 ($ Million) 2015 ($ Million) Current Liabilities 1024 1229 Table: Current Liabilities of BMX Limited This particular analysis is presented in form of tables and graphs that represents total current liabilities of BWX Limited from the year 2014 and 2015. In the year 2014, total liabilities arise at 1024 and 1229 in the year 2015. On critical analysis, it is noticed that total current liabilities increases in between two years on company BWX Limited. It is necessary in checking current liabilities in the near future (Barrow 2011). It should reduce in the upcoming year for smooth functioning of business organization. Non-current liabilities of BWX Limited It is essential to understand the fact that BWX Ltd uses non-current liabilities for future analysis purpose. Non-current liabilities figures shown in the balance sheet like long-term borrowings, long term lease obligations and bonds payable. BWX Limited 2014 ($ Million) 2015 ($ Million) Non-current liabilities 126 117 Table: Non-Current Liabilities of BMX Limited This particular analysis is presented in form of tables and graphs that represents total non-current liabilities of BWX Limited from the year 2014 and 2015. In the year 2014, total non-current liabilities arise at 126 and 117 in the year 2015. On critical analysis, it is noticed that total non-current liabilities decreases in between two years on company BWX Limited (Balla 2012). It is revealed that BWX Limited investors shows interest in non-current liabilities in the near future. It is essential for viewing at the debt relative as compared with cash flow operations in the most appropriate way. Stockholders equity of BWX Limited It is important to understand the fact that Stockholders equity reveals equity transactions as indicated in the investment capital from the point of view of investors. It revolves around stock exchange and capital stock in proper ways (Albrecht, Stice and Stice 2011). It ensures capital attributes and profit acquisition for future analysis purpose. It indulges in representation of equity stake as held in book accounts by equity investors in desired form. BWX Limited 2014 ($ Million) 2015 ($ Million) Stockholders equity 8222 9864 Table: Stockholders equity of BWX Limited This particular analysis is presented in form of tables and graphs that represents stockholders equity of BWX Limited from the year 2014 and 2015. In the year 2014, stockholders equity arises at 8222 and 9864 in the year 2015. On critical analysis, it is noticed that t stockholders equity increases in between two years on company BWX Limited. Increased stockholders equity helps BWX Limited in acquisition of more shares for better allocation of resources in the most appropriate way. Identifying income statement figures of BWX Limited Total operating revenues of BWX Limited Operating revenues of BWX Limited reveals income from derivation of potential sources for the company in addressing the day-to-day running of business activities. Business organization main objective is to maximize inventory sales and operating revenue in the near future. BWX Limited 2014 ($ Million) 2015 ($ Million) Total operating revenues 670 703 Table: Total operating revenues of BWX Limited This particular analysis is presented in form of tables and graphs that represents total operating revenues of BWX Limited from the year 2014 and 2015. In the year 2014, total operating revenues arise at 670 and 703 in the year 2015. On critical analysis, it is noticed that total operating revenues increases in between two years on company BWX Limited. Increased operating revenues are beneficial for the company and should continue it as far as possible. Net increase implies positive affect in carrying out business actions in the most appropriate way. Cost of goods sold of BWX Limited Cost of Goods Sold derives from direct cost in attribution in production of goods for sale within BWX Limited. Total amount arrives in dedicating cost of materials in creating direct costs and production for goods and services. It ensures excluding expenses like distribution costs and sales force costs at the same time. It initiates income statement accounts and deduction from total revenue in accordance with gross margin figures. BWX Limited 2014 ($ Million) 2015 ($ Million) Cost of goods sold 43320 46252 Table: Cost of goods sold of BWX Limited This particular analysis is presented in form of tables and graphs that represent cost of goods sold of BWX Limited from the year 2014 and 2015. In the year 2014, total current assets arise at 43320 and 46252 in the year 2015. On critical analysis, it is noticed that cost of goods sold increases in between two years on company BWX Limited. Increased cost of goods sold enables smooth operating activities as far as possible. It ensures creation of products as sold in the BWX Limited in form of production purpose. Total Expenses of BWX Limited It is important to understand the concept of total expenses as ij case of measuring total costs from managing and operating investment fund. It includes costs consisting of management fees and additional expenses as indicated in the BWX Limited. It divides into total assets as arrived from percentages in the most appropriate way. BWX Limited 2014 ($ Million) 2015 ($ Million) Total Expenses 4791 5385 Table: Total Expenses of BWX Limited This particular analysis is presented in form of tables and graphs that represents total expenses of BWX Limited from the year 2014 and 2015. In the year 2014, total expenses arise at 4791 and 5385 in the year 2015. On critical analysis, it is noticed that total expenses increases in between two years on company BWX Limited. It is advisable to BWX Limited for reducing the expenses as far as possible. It is income statement figure indicated in the annual reports of BWX Limited. Any non-operating gains and losses of BWX Limited It is important to understand the fact that non-operating income gains reveals organization income in derivation of business operations in relation with non-core operations. Non-operating gains include income, dividend and profits from investment in the most appropriate way. It ensures foreign exchange values, non-operating revenues and writing-off assets. BWX Limited 2014 ($ Million) 2015 ($ Million) Non-operating gains and loses 610 422 Conclusion At the end of the study, it is noticed that BWX Limited should carry out the business in certain ways. The above calculation reveals that BMX Limited should find ways in managing with inventory levels for smooth functioning of business activities. It should acquire more equity shares and reduce in the liabilities as far as possible. It should aim in acquisition of fixed assets in the near future. Reference List Albrecht, W., Stice, E. and Stice, J. (2011).Financial accounting. 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