Understanding financial statements Case Study Example | Topics and Well Written Essays - 1250 words

Understanding financial masterys - Case Study ExampleThe main rationale of this report is to get word the financial position and performance of Sandell and to suggest Parveen whether she should accept the position of sales director.The financial statement of the partnership focuses on the various areas of the financial performances. Comprehending financial statement is necessary for the achievement of goals of a company. The main aim of this report is to evaluate the financial performance of the Sandell Plc. The report has focused on the key features and purpose of Sandell Plc. It overly led emphasis on the importance of clean audit reports and good corporate governance. An analysis of the ratios indicates that the liquidity position of the company is not good and the solvency ratios film also increased which will have a negative impact on the company. Further, the operating cash cycle has decreased as compared to previous socio-economic class which signifies that Sandell will require more time to acquire its cash.Sandell Plc is listed on the United Kingdoms AIM (Alternative Investment Market). It is one of the building merchant which supplies ironmongery, beautify materials, heating and plumbing, timber, decorating and painting, sheet materials, insulation and dry lining, door and carpentry, and power and hand tools.The expansion which is desired by Sandell has not yet took place and therefore the company offered Parveen an incredibly generous compensation package in order to apply a new strategy of sales to support the expansion of Sandell into new markets of occidental Europe. So, the main purpose of Sandell Plc is to hire a sales director to focus on the areas which are not contributing to sales and then they will maneuver necessary steps accordingly to augment sales and growth of the company.The total assets of the company incorporate the current and non-current assets. Current assets have increased in analogy to previous year and the non-current assets are