Discuss the problems:
Flux Analysis
Q1. Obtain the most recent financial statement of any company that you would like to research. Please state the name of the company, its business activity along with key financial data (sales, operating profit, net income, assets, liabilities and equity of this company).
Q2. Obtain the same information for one of company's competitors in the same industry.
Q3. Assume that you are preparing a planning memo for both companies and the Partner in charge of your firm's office has asked you to include the following:
a. Flux analyze for sales and accounts receivable for both companies.
b. Your opinion on how you will use this flux information in your planning memo which will be presented in next partners meeting regarding these two clients. (Additional information: If you believe that this information really does not provide you good information it is valid to indicate that based upon this information alone you can not make an assessment. However, if this is your stance, please indicate what additional information that you will require.)
Note: A flux analysis is also known as an analytical review which is comparing one period to the next, or to budget or to another company.
For example:
Accounts Receivable as of 2006 100,000
Accounts Receivable as of 2007 250,000
$ change 150,000
% increase 150%