Financial Management - Essay Example

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Financial Management

Through the recent observations made by the organization it had been observed that Tulip Refractory is making a continuous loss for a span of consecutive five years but while the sister concern of the organization working with Cafe 88 is earning a year on year profit on a similar basis, i.e. no commercial price is to be charged from the office staff. From this study we have to analyze the reason for the loss of Tulip Refractory under the mentioned organization and how the sister concern of the main organization is earning profits working with Cafe 88(Analysis of Financial statement, n.d., and pp.1-10). Main activities of the Organization The main activities of Tulip Refractory are to provide meals, snacks and refreshment on working days to various staff of the organization. During the weekends the staffs of the Tulip Refractory are allowed to do some catering in private functions and ceremonies. Similar is the function of the Cafe 88 but we can observe a remarkable difference in the operation of both the catering services. This has put the main organization to take adequate steps based on the financial analysis thus conducted as follows. ...Show more

Summary

Financial Management Table of Contents Introduction 3 Main activities of the Organization 3 Financial Analysis 3 Liquidity Analysis 4 Solvency Analysis 5 Profitability Analysis 6 Operating Activity Analysis 7 Investment Activity Analysis 8 Recommendation 8 Conclusion 9 Reference 10 Introduction The main aim of the project is to draw a financial analysis of the two catering services namely, Tulip Refractory and Cafe 88 on the basis of the profit and loss statement and the balance sheet thus provided…
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