Financial Statements for Harvey Norman Australia Essay

Financial Statements for Harvey Norman Australia - Essay Example Overall, Harvey Norman Australia produced profitable 2011 and 2010 business operations. A) Analysis the Company Liquidity Position: The liquidity ratios focus on the Harvey Norman Australia’s ability to pay its liabilities on time. A company is liquid if its current ratio is positive. The company’s liquidity ratio is favorable, if the quick ratio is also positive (Brigham, 2009). 1. Current Ratio. The current ratio is shows the relationship between the company’s current assets and current liabilities. A positive current ratio shows a favorable picture of the company. The current ratio is arrived at by dividing the current assets by the current liabilities (Morrell, 2007). On the other hand, a negative current ratio indicates that the company is not able to use its current assets to pay for its currently maturing liabilities on time. Table 1 shows the company’s 2011 current ratio is 1.82 times. The above computation shows that company’s 2011 current assets (1,433,227.00) is higher than the prior year’s current assets (1,254,100). Likewise, the company’s 2011 current liabilities (786,852.00) are higher than the 2010 current liabilities (669,328.00). The ratio shows that the company’s current assets are 1.82 times higher than the company’s current liabilities. ... 2. Quick Ratio. The quick ratio is shows the relationship between the company’s quick assets and current liabilities. The quick asset amount is arrived at by deducting the inventory amount from the total current asset amount. Similarly, a positive current ratio indicates a positive image of the company. The current ratio is generated by dividing the quick assets by the current liabilities (Smart, 2008). Table 2 espouses the company’s 2011 quick ratio is 6.33 times. The ratio shows that the company’s 2011 quick assets (1,291,009.00) are higher than the prior year’s quick assets (1,200,183.00). The ratio shows that the company’s quick assets are 6.33 times more than the company’s current liabilities. The company’s 2010 quick ratio (5.64) is lower than the 2011 quick ratio (6.33). Using the quick ratio financial statement analysis, the two quick ratios show the company performed financially better in 2011, when compared to 2010. The quick ratio similarly proves that the company has the available funds to defray its present liabilities. B) Activity Position: The activity ratios measure the efficiency and liquidity of Harvey Norman Australia’s management. The ratios include determining how fast the company converts cash into other assets and the other assets back into cash (Taylor, 2006). 1. Inventory Turnover Ratio. The ratio determines how fast inventory is sold. The ratio is arrived at by dividing the company’s cost of goods sold by the average inventory (Taylor, 2006). Table 3 confirms the company’s 2011 inventory turnover ratio is 11.52 times. The ratio analysis shows that the company’s 2011 cost of goods figure (1,129,517.00) is lower than the prior year’s cost of goods amount (1,344,455.00). The ratio also

Four things you should do before you join the real world Essay

Four things you should do before you join the real world - Essay Example This step refers to talking to other people, listening what they have to say, and then repeating the process. Specifically, this is referring to the importance of continually investigating the types of professions other people are involve in and being inquisitive about discovering information. I performed this step by discussing career prospects with my classmates. In this way I asked where they work, where they plan on working, and if they have participated in any specific forms of internships. Through performing this step I learned a significant amount about the career goals of the people around me, as well as their strategies for pursuing these goals. Additionally I came to discover that a career fair would be held in my area of professional interest. The next step was being able to introduce myself. I recognize this did not merely entail saying hello to someone. Instead it requires me to introduce myself in a way that gives a strong impression and aids me in my quest for a job. For a period I considered what would make a good impression and then practiced these skills with classmates. Specifically I worked on maintaining eye contact and presenting a confident disposition. The next step was to network with my neighbors. While I regularly talk with my neighbors and classmates I have not always made a concerted effort to ‘network’ with them. With my increased focus on networking, however, I set about changing this. In these regards I made an effort to add all of my neighbors to my Facebook page. Additionally I started a LinkedIn page and added my neighbors. I came to recognize the importance of developing a professional presence through these networking efforts; subsequently I changed my Facebook profile and worked to find more professional pictures. The final step I participated in was to ‘make the most of informal interviews’. I got a good chance to practice this skill at the career fair for my major. During this