Financial statements for Lemonade

Introduction Financial reports are very important tools used in gauging the financial health of business enterprises and making predictions of the future of a business. It is therefore important that any business organization use these reports in formulating its strategies and future goals to be delivered.Advertising We will write a custom report sample on Financial statements for Lemonade specifically for you for only $16.05 $11/page Learn More While the financial reports give a wider picture of the state of affairs of the business, the ratio provides specific areas of strength within the business and provides an opportunity for the management to leverage on its areas of strength and take corrective measures against the weaknesses. This paper will provide the financial statements and the corresponding ratios for Lemonade stand business for the two seasons. This will be followed by a critical analysis of the financial health of the business as shown by t he financial report. Financial statements Balance sheet This is a very important financial statement in a business entity. It shows the financial position of the business in terms of assets, liabilities and the owner’s equity. A well prepared balance sheet must therefore clearly indicate the assets owned by the business, the liabilities that the business owes and the money invested by the shareholders or owners of the business. The financial statement below shows the balance sheet for Lemonade business for the two seasons: The income statement on the other hand provides information about the financial performance of a business within a certain period of time.It gives the revenues and expenditures which must be matched to realize the earnings. The income statement below is a summary of the Lemonade business for the two seasons: Advertising Looking for report on business economics? Let's see if we can help you! Get your first paper with 15% OFF Learn More Analys is of the ratios and the financial statements The balance sheet above shows that the business financial position improved greatly between season one and season two as the balance sheet value increased from $16480 to $18400 representing a 12.22% jump in the value of the balance sheet. The same trend was witnessed with the equity side of the balance sheet as the value of equity increased from $4900 to $6200 which was quite impressive for the business. The company liabilities also increased from 11880 to 12120 representing 2% increase. This can be attributed to the increase in the level of activity as the firm tried to improve its level of operation. From the income statement the firms total earnings increased by more than 78% from $9400 to $16800.The increase in earnings is attributed to the large jump in the firms revenues from $44000 to $5700.Although the expenses also increased, the percentage increase stood at 17% which was too low compared to the increase in the revenues which st ood at 29%. One of the key factors that determine the financial health of any business is the liquidity. A closer look at liquidity ratios such as current ratio and cash ratio shows a great improvement in the firm’s liquidity from season one to season two. The current ratio in season two stood at 2.10 up from 1.8 in season one and this clearly shows that the firms current asset were able to cover the current liabilities by more than 2 times compared to 1.8 times in season one. The same trend is seen in cash ratio where the firm’s cash and cash equivalents stands at 2.09 times its current liabilities. This is an improvement from 1.7 times recorded in the first season. The debt to equity ratio which shows the level of exposure to debt financing reduced from 2.3 to 1.4 from season one to season two. This means that the firm is properly protected from too much debt and hence the company can use much of its earnings to finance expansion projects rather than repay debt. The inventory turnover increased from 4 times to 9 times which clearly shows an improvement in the firm’s efficiency in operations and hence stock is able to move faster than in the first season. The asset turn over however declined from 3.09 to 2.6 which means that every dollar of asset invested only realized 2.6 in season two compared to 3.09 in season one. This calls for better ways of managing assets in the business. The firm should also avoid keeping too much idle assets (Brigham Houston, 2009).Advertising We will write a custom report sample on Financial statements for Lemonade specifically for you for only $16.05 $11/page Learn More Another major indicator of the financial health of a business is the profitability and from the profitability ratios presented the business was able to record improved profits in season two compared to season one. The profit margin increased from 70.5% to 78% and this indicates the firm was able to realize more th an 78% sales as profits. The return on equity increased from 47% in season one to 58% in season two. The returns on assets also increased from 10% in season one to 15% in season two. These are clear indications of poor management of equity and assets respectively and hence the need for prudent ways of managing assets and equity. Based on the above financial statements and ratios the firm still stands at a better position provided by strong liquidity and less exposure and hence it has a bright future. The management must however set up proper methods of managing assets and owners equity to realize maximum returns. Reference Brigham, E.F. Houston, F.J. (2009). Fundamentals of Financial Management. 12th ed. Mason, OH : Cengage South-Western. This report on Financial statements for Lemonade was written and submitted by user Thanos to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly. You can donate your paper here.

Dying of Shame Essays

Dying of Shame Essays Dying of Shame Essays Felicity Aurthbnot, the writer of "Dying of shame" the writer responsible of bringing these emotional issues to the attention of the world audience. She explores the disturbing issue of the terrible treatment of the children of Iraq. By writing a feature article using certain techniques including; emotive language, and inclusion of her own personal experiences, statistics and facts and the use of repetition; Felicity is able to arouse emotions within the reader about this dismaying issue. The title is a technique which the author uses to provoke certain emotions within the reader. The title ", being a metaphor, challenges the opinions and ideals of the reader. Most people’s first thought of the title would be that the Iraqi people are the ones who are dying of shame. After reading the article however it can be said that the readers are actually the ones who will be the ones dying of shame because of their lack of support to Iraqi situation. This thought makes the reader feel emotions of sympathy, pity and remorse towards the situation and the children of Iraq - which is the main aim of Felicity. Emotive Language is an essential technique that writers use to appeal to certain reader’s emotions. In "Dying of shame", Felicity mainly uses emotive language to create a deeper sense of sympathy and compassion towards the treatment of children in Iraq. Examples include Felicity’s appeal to people’s values when she expresses that "The invasion has meant the death of childhood and not literary, but an implication that the invasion has caused an end to childlike things. The emotional impact of this metaphor therefore creates for the audience a sense of sadness because of the sacredness most people feel towards childhood. Another establishment of this idea is created by the metaphor within the last two paragraphs that describes a child’s trauma created from dropping an egg symbolic of the lives of the Iraqi people which is fragile. This finally shows the way in which children in Iraq are living within a shattered country they don’t be worthy of. It is emphasised that the people don’t deserve this because of the compassion shown by the store owner, who gives the child another egg, showing the compassion that exists within a supposedly ‘bad’ country. Again this metaphor raises emotions of regret and compassion towards the children and people of Iraq. Felicity uses a selection of words to directly appeal to the reader’s emotions. These words included mostly descriptive words of the children being; little, small, tiny, in pain, chronically malnourished and suffering. All these words have negative meaning and disturbs the reader on a deeper level. The image created is so disgraceful that it makes the reader feel emotionally disgusted by the shocking effects. With the use of such descriptive words, together with the explanation of the situation the reader’s emotions can even turn to anger. Felicity’s personal contribution and experience within Iraq allows the reader a better understanding of the issue and presents a more emotionally article. In the second paragraph Felicity expresses that "To witness the effect of the United Nations allowance is to live with

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