Frazer Group and Caribou Essay Example | Topics and Well Written Essays - 750 words

Frazer crowd and Caribou - Essay ExampleIts pronouncements have been applied in reporting of minority interests (Morgan et al 2009). What auditing standards are used by the external auditors? The independent auditors have applied guidelines forwarded by the Auditing Standards Board (ASB) which issues pronouncements on auditing practice (Dauber, 2009Rittenberg et al 2011). Analyze and comment on the differences in the annual statements name on the companies websites. Provide a few specific differences in content and format. The major differences in the two companies financial records are evident in the match Sheet and Consolidated cash flow statements. To start with the balance sheets, Frazer sort Items are represented under three main classes Current assets, Current liabilities and Equity. This is diametric from Caribous Balance sheet which has clear entries for, Assets (both current and non-current), Liabilities, Equity, and Minority Interests (Whittington et al 2011). In regar d to consolidated cash flow statement, Caribous has clear entries for, Cash Flow for Operating Activities, Cash Flow from Investing Activities, from Financing Activities, and Net increase/decrease in cash and cash equivalents. This is kinda different from Frazer Groups which clear entries for, operating activities, investing activities, and financing activities appearing less complex (Whittington et al 2012). Which one of the two companies is the most bankable? Financial records reported in 000,000 CARIBOU COFFEE FAZER GROUP 2010 2009 2008 2010 2009 2008 Tangible assets 101.725 93.727 89.572 378.1 389.6 369.4 Shareholders Equity 62.466 50.776 44.008 126.5 120.4 118.8 Stocks 25.931 13.278 10.724 57.2 51.5 46.8 Retained Earnings 12 7 0 310.5 300.9 275.4 Turnover 242.293 283.997 262.539 1513.6 1441.1 1159.7 force costs 105.993 101.169 99.865 508.7 480.9 477.6 Operating network 15.193 10.107 5.541 58.5 44.5 135 Profit before taxes 14.926 9.721 5.306 58.4 32.9 31.9 Net profit 9.797 5 .138 4.825 58.4 32.9 24.6 Operating profit before WC 7.517 15.594 10.264 148 112.3 102.7 Dividends received 1.1 1.2 1.1 Cash from operating activities 23.092 23.578 22.462 117.7 118 116.5 Fazer Group is by a large extent the most profitable confederation. Looking at the net profit generated in the three geezerhood, 2008-2010, Fazer Group had an increasing profit ranging between $24.6 million to $58.4. The financial grade, 2009-2010, was the Groups most profitable year (Fazer Group 2010). This is unlike Caribou Coffee which in the three years under examination recorded a net profit ranging, $4 million to $9.7 million (Caribou Coffee Financial Records 2005-2011). Financial year 2009-2010, was the companys most profitable recording a net profit of $9.7 million. Looking at the figures recorded, based on net profit which is a reasonable arrow of a companys profitability it is clear that there is a marginal difference in profitability in favor of Fazer Group (Weirich et al 2012). Comp are growth of revenues versus income over time and between the two companies. In this case, the basis of the revenue growth is sales. Starting with a look at Fazer Group which is by far the bigger of the two entities we realize an irregular growth in revenue in the three years under observation. In 2008, the companys sales were $369.4 million, in 2009, the sales increased to $389.6 million, later in 2010, the sales declined to $378.1 million. This represents a growth of 5.5% in sales for the year, 2009-2010, and a growth of -2.95% for the year