Introduction to Financial Accounting Essay Example | Topics and Well Written Essays - 2500 words

Introduction to Financial Accounting - Essay ExampleThe business strategy of the companion is to remain focused on building its brands and improve upon its estate. The companys strategy is to be a modern, high quality, highly efficient brewer, wholesaler and retail merchant of premium specialty beers, wines, spirits, and minerals. (J.B.Neame, Chief Executive in 2007 Annual Report). The company is admitting in its report that turnover of the company is increasing year by year, still it fails to mention anything about liquidity position of the company. Keeping in view such shortcomings in the material unloosend by the company as well as based on above background about company and also as per available terms of references, the financial and overall performance of the company has been study in this write-up as under.3. In order to evaluate the impact of market developments, the situation has been analyzed based on earning per sh are and the posture of low pileus gearing adopted by the company, in absence any data available about the company from active markets.In respect of analyzing the sales deportment over period from 2005 to2007, the sales in absolute figures have bountiful from 91,354,000 in 2005 to 95,343,000 in 2006 and to 100,047,000 in 2007. Relatively sales in 2007 have grown 4.9% over 2006 and 9.51% over 2005. The sales behavior is very positive and encouraging despite smoking ban. The basic reason for such tremendous growth in absolute sales is growth in companys infrastructural facilities providing a real push to the business. By the end of 2007 the company owned 376 pubs and out of these338 pubs are freehold. Further the adherence to basic strategy of brand building is in fact paying dividends in the growth of gross turnover of the company. On this issue the chairman of the company emphasized in his statement in companys annual report 2007, Our business strategy remains to build our brands, habilitate to improve our pub estate, remain focused on our strength and to improve our overall