The SRS Financial Analysis Report

As witnessed in the financial year, the closure of October exhibits profits and an increase in the revenues due to recovery in the economy. The survival and health situation of the company is critical since its goods and services are not primary products to the end consumers. The summer season holidays just ended during which the community schools were closed. The company’s primary source of customers is the schools and parents who need educational supplies for their scholars. Therefore, this explains the massive decline for the revenues during the preceding months of the summer holiday season. Therefore, the quick ratio of the company is the net value of Assets and income of the company that can pay its short-termed liabilities (current).

Hence the instantaneous rate at September is estimated at $ 2,032,500. Last, the liquidity index of the company is mostly valued into quarters. Since the company’s financial situations are calculated quarterly, it is narrated that the time required to convert all the Assets into liquid cash entirely is three months. The SRS Educational Supply Company’s net income has been excellent for the fiscal September with a slight increase margin from the previous month. The current asset amounts to cash $ 40, 000, Accounts receivables calculating to $ 340, 000 (rate on the stock, the value of goods supplied and unpaid invoices), inventory valued at $ 50, 000, prepaid insurance of $ 18, 000. Therefore, the worth of total current Assets as at the previous end year valued at $ 448, 000. The fixed Assets comprising of building and equipment in net value (gross less wear and tear depreciation at that year) valued at $ 1, 308, 000.

Perhaps, on the other side of the balance sheet consisting of liabilities and owners’ equity consists of: first, the liabilities. The value for payable accounts is worth $ 130, 000; notes payable amounting to null hence the value for total liabilities is worth $ 130, 000. For August, cash used for investing activities amounted to $ 40, 000. As $ (35, 050 July, 35, 435 August, 120, 105 September, and 120, 105 for the quarter). Hence a drop of $ 385 from July to August $ 84670. the drop is primarily due to lack of material importance for the acquisition in fiscal July as the company’s business was on a low peak season and the majority of its clients were not in operations. Perhaps, in heavy terms according to the SRS Educational Supply Company’s quarterly performance, the company had an excellent fiscal quarter.

The most likely approximation of insurance costs (per month) valued at $ 3, 000. The values of Assets’ depreciation expense (per month) valued at$ 25, 000. The benefits of sales represented per month are assessed at a percentage of 30% for the fiscal quarter. Precisely, the percentage of sales collected in the following month is valued at 70%. The SRS Educational Supply Company balance sheet information as updated for September reflects as follows: value for current assets during the financial quarter amounts to cash at hand $ 120, 105, the accounts receivables $332, 500, inventory sums up to $ 34, 650 and the prepaid insurance valued at $ 9, 000. Therefore, provided the information, stakeholders (shareholders and directors can use the resource from the report to decide on future investments of the business). Since the company is making profits, future expansion and growth strategies can be employed.