Accounting &Finance for Managers

Essay by greentree June 2009

download word file, 6 pages 5.0

TABLE OF CONTENTSContentPage1.0-Introduction52.0 The Annual Report of Al Reem Company72.1-Balance Sheet72.2-Statement of Income82.3-Statement of Cash Flow92.4-The Ratio Calculation102.5 Al Reem Ratio Calculation112.5 Ratio Explanation123.0-Recomandation134.0-Limation of Ratio Analysis145.0- Conclusion15Reference161.0 Introduction:Today, management accounting information is used for decision-making, learning, planning, and controlling activities.

The information that management accounting systems produce supports the operational and strategic needs of the enterprise. Measures of the economic condition of the enterprise such as the cost and profitability of the organization's products, services, and customers are available only from management accounting systemsEmployees use management accounting information to receive rapid feedback on their performance so that they can learn from the recent past and improve for the future. Used in this way, management accounting information supports the organization's continuous learning and improvements activities. Management accounting information measure the economic performance of decentralized operating units such as business units, divisions, and departments. It provides feedback to senior management about the units' performance and also serves as the linkage between the strategy of the organization and the execution of the strategy in individual operating units.

In today's competitive environment, management accounts have become part of the management team, participating in formulating and implementing strategy. Management accountants can translate strategic intent into operational and managerial measures. Rather than just being caretakers of data and producers of historical reports, they can become the designers of an organization's critical management information systems.

In this report I will analyze the balance sheet of Al Reem Company in the role of management accountant, so first step in the study will be identifying the key indicators which is Al Reem companyAl Reem is a wholly Saudi company with limited liability registered in the commercial registration in Dhahran city in Saudi Arabia.

The company is engaged in maintenance and inspection service of the equipment used in industrial...