Question

In: Accounting

Much of the analysis done by financial managers is based on numbers that are different from...

Much of the analysis done by financial managers is based on numbers that are different from what would seem to be the corresponding numbers presented in the financial statements. This difference is not due to any kind of cooking the books or other attempts to mislead anyone. One example is the use of market value rather than historical cost in the valuation of assets.

For your first post, define financial management. What are some other examples of the differences between financial management and financial accounting? Give examples. For your next post, explain the DuPont identity. How is it used in finance? Locate the financial statements for two firms in the same industry. Calculate all four terms of the DuPont identity, and present the results but do not analyze them.

URGENT: NEED ANSWER ASAP

PLEASE RESPOND WITH COPY AND PASTE, NOT ATTACHMENT USE ORIGINAL CONTENT NOT USED BEFORE ON CHEGG

PLEASE ANSWER THROUGHLY TO ALL ANSWER TO BEST ABILITES ORIGINAL SOURCE NEVER USED BEFORE!!!

Solutions

Expert Solution

Definition: Financial management is the managerial activity concerned with acquiring, financing and managing planning assets to accomplish the overall goal of the business organization.

Differences:

Financial management is an activity or process while financial accounting is a method in which all financial transactions are recorded

Financial management is not guided by any principles or rules whereas financial accounting is to be done as per applicable GAAP.

Financial management is a managerial activity whereas financial accounting is done an accountant.

DuPont analysis is the most popular technique being used for calculating return on equity (ROE).

ROE        = Profit margin × Asset turnover × Equity multiplier

                = (Net income/Total sales) × (Total sales/Total assets) × (Total assets/Total equity)

Microsoft

Profit margin

Asset turnover

Equity multiplier

30/6/2017

Net income/Total sales

Total sales/Total assets

Total assets/Total equity

21204000/89950000

89950000/241086000

241086000/72394000

0.2357

0.3731

3.3302

ROE = 0.29

Apple

Profit margin

Asset turnover

Equity multiplier

30/9/2017

Net income/Total sales

Total sales/Total assets

Total assets/Total equity

48351000/229234000

229234000/375319000

375319000/134047000

0.2109

0.6108

2.7999

ROE = 0.36


Related Solutions

Much of the analysis done by financial managers is based on numbers that are different from what would seem to be the corresponding numbers presented in the financial statements.
Much of the analysis done by financial managers is based on numbers that are different from what would seem to be the corresponding numbers presented in the financial statements. This difference is not due to any kind of cooking the books or other attempts to mislead anyone. One example is the use of market value rather than historical cost in the valuation of assets.define financial management. What are some other examples of the differences between financial management and financial accounting?...
Financial Statement Analysis, specifically Ratio Analysis is often performed by managers, investors, and creditors.
Financial Statement Analysis, specifically Ratio Analysis is often performed by managers, investors, and creditors. What is the primary goal of each of these groups when evaluating ratios?
Below are numbers from a balance sheet and income statement. Based on these numbers calculate the...
Below are numbers from a balance sheet and income statement. Based on these numbers calculate the financial ratios requested below. All answers must be rounded to TWO decimal places including percentages Sales 421756 Operating Costs 313053 Depreciation Expense 10000 Interest Expense 5000 Tax Expense 29408 Cash 1000 Receivables 30000 Inventories 52175 Fixed Assets, Net 50000 Payables 11000 Accrued Expenses 10000 Long-Term Loan 50000 Common Equity 62175 Based on these values calculate: Current ratio Quick ratio NWC-to-total-Assets (Working capital to assets)...
Identify two (2) theories from the financial planning or financial analysis areas (based upon your concentration)....
Identify two (2) theories from the financial planning or financial analysis areas (based upon your concentration). Explain, and analyze these theories.
Write a financial analysis (include financial highlights and ratio analysis) for XiaoMi Corporation which are based...
Write a financial analysis (include financial highlights and ratio analysis) for XiaoMi Corporation which are based on it's Year 2019 Annual Report. (At least 500 words with your own words)
Write a financial analysis (include financial highlights and ratio analysis) for XiaoMi Corporation which are based...
Write a financial analysis (include financial highlights and ratio analysis) for XiaoMi Corporation which are based on it's Year 2019 Annual Report( You can google the Xiaomi annual report 2019) (At least 500 words with your own words)
What are the limits of financial statement analysis and how do managers manipulate ratios for their...
What are the limits of financial statement analysis and how do managers manipulate ratios for their own personal gain.
I need a regression analysis done on the following numbers. IC Price Income Temp Lag-temp 0.386...
I need a regression analysis done on the following numbers. IC Price Income Temp Lag-temp 0.386 0.27 78 41 56 0.374 0.282 79 56 63 0.393 0.277 81 63 68 0.425 0.28 80 68 69 0.406 0.272 76 69 65 0.344 0.262 78 65 61 0.327 0.275 82 61 47 0.288 0.267 79 47 32 0.269 0.265 76 32 24 0.256 0.277 79 24 28 0.286 0.282 82 28 26 0.298 0.27 85 26 32 0.329 0.272 86 32 40...
From a Financial Managers standpoint , how might the financial manager argue that this case is...
From a Financial Managers standpoint , how might the financial manager argue that this case is ethical and how might they argue it is unethical? Both sides of the argument. CASE: Trigon Blue Cross/Blue Shield (Copayments) When most people are told they owe a coinsurance payment on a medical bill, they simply grimace and write a check; not Gerald Haeckel, a retiree from Richmond, Virginia. He wanted proof that he was not paying more than the 20 percent portion that...
Analysis of financial statements can be done in many ways. In Chapter 13 of your textbook...
Analysis of financial statements can be done in many ways. In Chapter 13 of your textbook it discusses horizontal and vertical analysis as well as ratio analysis. Pick three ratios that you think are the best indicator of a company's health. Explain what those ratios tell you about a company and why you chose them.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT