Question

Please analyze the Income Statement and Balance Sheet of a Canadian public firm, and assess as to how the numbers depicted can be improved in these financial documents.

you have to select a canadian firm and analyse its financial statements and also provide suggestions how they can improve their weaker areas.

this is a complete question please let me know what else you want in question

Answer 1

Answer: If we talk about the financial statement like Income statement and Balance sheet of Canadian public firm there are few items which have been identified and are listed below:

• There is no section for assets as under the name of non-current assets.
• The Same problem is listed under the liabilities and shareholders section as there is no section for non-current liabilities.
• The section can be improved by showing the non-current asset and non-current liabilities on the top part of the Balance sheet section.
• In the Income statement, we can see that a Canadian firm shows revenue under which the direct costs and indirect costs sections are allowed and deduction for it is shown there.
• Instead of calculating Gross Margin, Operating Margin, Earnings before tax, we can directly use all the expenses under one head and calculate Net income right away.

These are the few points shown as weaker sections and makes it difficult to understand. By implementing all these can make it better in two sense. One in a way of presentation and other in a way of calculation & understanding.