Executive summary

Various financial analysis tasks have been conducted in this assignment. The first task has involved developing an income statement, Balance Sheet and cash flow statement using the data provided.  The income statement shows that the business made a net profit of $11,052.64 after necessary adjustments.  The cash flow statement provides information about the net change in cash resulting from investing, operating and financing activities of Bobble in Style during the period.  There was a net decrease in cash amounting to $3,950.36.  The balance sheet shows the business's financial position a specific date.  The three statements provide a better understanding of the start up’s financial health.

 The second part involves calculating Net Profit Margin, Quick ratio, and Debt-to-Equity Ratio.  The business recorded a net profit margin of 33%.  The high ratio shows that the business is effective in converting sales into net income. As a result, it has achieved a higher ratio by keeping expenses lower and generating more revenues.  The quick ratio is 105.6 while debt to equity ratio is 30%

The third task entailed cost classification. Provided costs were classified into either fixed or variable costs. Costs classified as fixed are those which remained constant despite changes in output while those clasified as variable are those that changed with changes in output.  The fourth task involved calculating the present values of an investment as well as its expected returns in three years.  The fifth part is the budget preparation using the costs identified in the task above. Task six involved calculating incremental costs associated with two decisions.   It was identified that the business should consider adopting option 2.  Tasks seven and eight involved the calculation of Break even in units and contribution margin respectively.

Sherry Roberts is the author of this paper. A senior editor at MeldaResearch.Com in essay writing services. If you need a similar paper you can place your order from cheap assignment writing service services.