Professional Documents
Culture Documents
29/10/2014
Business Management.
2013 to 2015
Regent College,.
London.
Name Daniel P.
(Your work will not be accepted without a signed copy of this authentication.)
Content
Introduction
pg. 4
pg. 4
pg. 5
pg. 6
pg. 7
pg. 8
pg. 9
LO 2. Int. and ext. short, medium and long term. Int. Adv. Disadvantage
pg. 10
pg. 11
pg. 12
pg. 13
pg. 14
pg. 15
pg. 16
pg. 17, 18
Break-even point
pg. 18
pg. 19
pg. 20
pg. 21
pg. 22
Consolidate Income Statement (profit & loss account), 2011, 2012, 2013
pg. 22
pg. 23
pg. 24
pg. 25
pg. 25
Conclusion, Criticize
pg. 26
References
pg. 27
Introduction
On this report I will write about the strategic review, investment appraisal of John Lewis
(plc), as being in charge like a newly appointed assistant to carry out and identify the most
suitable and optional whether a decision is more beneficial than possible many others and as
first part will be mentioned the financial sources which businesses are more likely to identify
in order to build/set up driven sources on achieving, adequate and valuable future decisions
into their fundamental tasks. Financial sources and range of sources connect as Partnership,
Shareholders and Stakeholders.
John Lewis plc, which its first shop was built in Oxford Circus in 1864. In our days is
recognised as industry retailer, the third largest private company in UK and becomes very
popular as department store chain retailer. Owned by its employee and Partnership who have
a say in how it is runed. Although has a 112 Waitrose supermarkets, where staff employees in
43 store cross the UK. John Lewis was non-profit organisation for a period back in time. John
Lewis Partnership is subsidiary of John Lewis plc. Although their market function
capabilities and operation process, place a joint business as agreement to share in the profits
and losses of the enterprises, with more than two as contribution on their Working Capital
and a turnover of GBP 2.8 bill and a pre-tax profits of GBP 150 mill. Its free from special
Govt regulation and also with shares on London Stock Exchange. Produce, Cosmetics,
Clothing, Housewares, Food and direct services.
LO 1, Sources of finance available to the business.
As first appropriate direction is the financial sources which one should be taken into
investment options such as designing their appropriate costing, on discussing and describing
the main financial statement, by comparing them format of financial statement for different
types of businesses and which decisions should mostly fit better on this kind of processes.
The Financial part, can be seen as any business small or large size needs money to finance on
ruling their activity. Finance is basically two steps the involvement of decision in spending
(providing) money for any kind of project and as second involves the willing and decision on
rising it.
The Finance behaviour it is the counter invention of kindred instruments of present and
implying the future, which one has a constantly adopting, present term acts on focusing into
the future term acts of random, by enlarging the possible opportunities such as wide
investment projects and system technology on working developing and achieving continuous
a better results.
Regarding the type of rising Financial Sources chosen, depend the nature of the business if
they are large industries, organisation are able to use a wider possible opportunities on
diverse and various activities, than the smaller organisations.
Sources of Finance to which one we can apply are four as numbers were linking on row
together generally.
Before going into business an entrepreneur needs to secure sufficient financial resources. As
strategic review John Lewis make further encouraging investments as long-term by 13 .6
million in modernising as introducing technical initiative in store, having concierge style
welcome desk, where shoppers will be able to browse goods and services, also investment in
new shops infrastructure.
Bellow you will see a guide model format as Sources of Finance such as basic option for
Business Plan.
Here I would mention the position of John Lewis plc which is a public limited
company which one has available shares to the public sector (shareholders). For
better understanding the John Lewis plc is a private sector company which one
can offer their share on stock exchange. John Lewis decided to make weekly
information as such workers and business affair should understand how trade
degree was doing on report basis.
T
he above figure as part of Sources of Finance you can see the process and subsidiary of profit.
The sources of Finance they are two types.
Short-Term
Long-Term
Must be paid back within a year, also it is Must be paid back within /over more than
a settlement to pay back a large bill set
one year.
up monthly, or Medium-term.
a small thriving
Banks, to pay back to the bank a bill
Banks also provide long-term loan on
overthrown.
(property, land).
Banks, overdraft facility.
On rising founds as it is popular venture
capital.
1) Internal Sources, are raised from within the business, organisation, can be find and create
from the interior/inside of business for example: As way in which a profit can be kept back to
finance expansion of business its can be assets which one it is counted, resource and which
one is expected to provide future economic benefit by reducing future cash outflow also the
possibility to generate cash inflows. a resource is an by selling assets (items owns by the
business) which one no longer needs really anymore and by freeing on converting them to
cash up for eventuality as regain, Revenue and Sales Income.
a) Internal Sources such as Sale of Fixed Assets where the money it is come from
selling an assets, machinery which one the business doesnt need it anymore.
b) Working Capital the money is coming from owners own savings.
c) Sale of Stock where money comes into the business from selling off the stock
d) Retained Profits is the profit used for purchase of different of assets, value of profits
owned by the business, organisation when is paid off the final payment. On Leasing (no need
to pay a large sum up front), but on Hire Purchase (need to pay a large sum up front).
i) Sponsorship is when a business, company give support to another business, company in
exchange of promotional display can be for short or large term.
j) Donations is kind of financial gifts from individuals or organisations to a business,
company.
k) Mortgage is type of secured loan (usually banks), such as for buying property (land,
house), and the payment method is long term spreads, typically 25 years. Once the final
payment is done the business, organisation (borrower) will fully own the respective (property,
land). Although all these imply when a business need to expand and need a new shop.
l) Government Grants the request of low profit or at all, generally aid to hold and help
reduction as producers cost of production. The Govt organisations such as invest NI offer
grants to businesses at bought ready established and news. Certain condition such as where
the business has to locate.
m) Debentures (holders), is type of long-term loan such as promise on fixed payment of
annual interest. The debentures holders doesnt have voting right on how the business run.
Internal
Sources
External
Sources
SHORT-TERM
Retained Profits.
Working Capital.
Debt Collection.
Sale of Stock.
Govt Grants
Trade Credit.
Overdrafts.
Leasing Hire Purchase.
Sponsorship.
Donations.
Venture Capital.
MEDIUM-TERM
Sale of Fixed Assets.
Retained Profits.
LONG-TERM
Working Capital.
Govt Grants.
Leasing &
Hire Purchase.
Sponsorship.
Bank Loans & Mortgages.
Venture Capital.
Govt Grants.
Share Capital.
Leasing & Hire
Purchase.
Sponsorship.
Bank Loans &
Mortgages.
Debentures.
Share Capital.
Above I will present a table classifying the different sources as finance such as parameters of
time and type.
I will develop a closer consideration whether I consider that is beneficial to John Lewis
Partnership.
External Sources of Finance
Advantages
Disadvantages
a) Less strain on cash flow.
a) More financial processing is required.
cheaper prices.
m) Businesses is making money.
They receive annual interest benefits (VIP
status of free passes)
Debenture holders do not have the right to
vote at the company general meeting on
how the business is run.
Debentures can be redeemed when the
business/company/firm has surplus funds.
The financial source identified for John Lewis as partnership in part imply the
contribution of Personal Capital (personal saving). Retained earnings (profits),
Bank loan, Hire Purchase, Sale and lease back, Trade Credit, Sale of Assets,
Admission of new partners, Although another source applied in part by John
Lewis is Share Capital (equity and preference capital), Issuing rights or right
issue. Differed end ordinary shares, Bank loan, Trade Credit, Debentures, Venture
Capital, Lease and Hire Purchase, Factoring and International money as plc which
want to expand their capital market.
Consolidate Financial Statement as combined financial statement of subsidiaries,
divisions or sub organizations
The growth of the business can be measured in different ways.
Growth of a business can be measured in several ways such as.
The value of the firm's sales turnover (sales revenue)
The firm's market share (the sales revenue of the business as a percentage of the industry's sales)
The number of employees hired by the business. There are reasons for growth, which includes:
Economies of scale
On assessing the sources listed and mentioned before about their implication as
financial sources. Dilution of control implications. Legal implication. Financial
implication and Bankruptcy.
DLUTION OF
CONTROL
IMPLICATION
4 Dilution
4 Bankruptcy
5 Lease Purchase
5 Legal implication
5 Financial
implication
5 Dilution
5 Bankruptcy
The current use of financial sources less or more but not accurate, is less risky
part as source of finance for John Lewis Partnership. Where also there is an
inclination of acceptance that more businesses will try to use an optional
financial tool as Mezzanine Financing.
from investment or the risk free rate on return. The tangible cost where a Company cant
conduct the Company without spending on tangible cost, like (Product quality services,
employee medical benefit, salaries and wages, commercial insurance and transportation), the
tangible cost produce obviously benefit. Furthermore intangible cost it seen as pattern of loss
and result from intangible resources also has a negative effect on cutting staffing/personnel
level and benefits. Borrowing cost.
Total cost = (total fixed cost + variable cost) / total number produced.
Fixed cost: If the company has zero output or higher output the level of fixed cost will
remain broadly the same but in the long-term fixed cost can alter. Example of fixed costs:
Rent and rates. Depreciation. Research and development. Marketing cost (non-revenue
related). Administration cost.
Variable Cost: Are those costs which vary directly with the level of output (they represent
payment output-related input such as raw material, revenue-related cost such as commission).
A distinction is often made between Direct variable coat and Indirect variable cost.
Direct variable cost are those which can be directly attributed to the production of a particular
product or service and allocated to a particular cost centre (e.g. Raw materials and the wages
those working those working in the production line).
Indirect variable cost are those which one cannot be attributable to the production but they do
vary output (these include Depreciation where it is calculated related to output, (e.g.
machine hours maintenance and certain labour cost).
business is capable to deal with). The insolvency by overtrading might arise, where is
important the Company to avoid to overtrade.
Decision making, John Lewis Partnership is a business idea skills and talents in such a way
that they can form a good business team where the business owners necessarily share the
profits, liabilities and the decision making, in a few words this is the advantages as
partnership principle where partners share the decision making and can help each other out
when they need. More partners mean more brain as ideas on solving any problem the
business encounter.
The impact of finance on financial statements. Two main financial statements are
recognised international as standard, (IAS) and (IFRS). Every transaction that the Company
gets involved. The two main types of financial reports of accounts are:
Management accounting. Present and analyse financial data to help management to
Income statement. Measure the performance over a given period, usually six mounts
and one year, comprise the income of the Company against of cost of goods or
services and expenses incurred in that revenue.
Balance sheet. Snapshot of the Company what is owed and what is owns and its
liability what is owes
Cash flow statement. Shows how the business has generated, disposed of cash and
liquid founds under the period under review.
May be found detailed information for investors, (Report of the Corporate Governance and
Director Report), and auditors statement.
0.29
Gov't Grants
Corporate Bonds
Mezzanine Financing
0.00%
10.00%
Series 1
20.00%
Series 2
30.00%
Column1
40.00%
50.00%
60.00%
Conclusion
Regarding the source on financing investments, Banks loan is more likely if exist fixed assets
and generally provided as low interest rate. John Lewis, generally in major part of the activity
issue share. Regarding the Bank Loan (lending for businesses) our days has fallen
tremendously. Although is mentioned that different financing choices differ from business to
business, but choosing the right financing sources where some sources are more flexible than
the other sources helps. John Lewis has a large turnover as modern company system created a
wealth connection as partnership with its stakeholders. Choosing the right financing source is
vital points for business interest rate or different other cost of financing.
INTRODUCTION
John Lewis Partnership is composed from three segments John Lewis Waitrose, and other
Corporate. With a revenue of GBP 9.27 bill, a Net Income of GBP 145.30 m, Interoperated
1929 and Employees 81.90K. Financial Planning of a business as John Lewis section is the
section that determine whether or not a business idea like financial planning expect to shows
if is viable where is the most important part from the business plan, a key component in
determining whether the plan is going to be able to attract growth any profit for the
investment in your business idea. This report basically describe three variety of financial
information planning which consist in three form as decision making: Income statement, cash
flow projection, the balance sheet and also a view as better understanding of financial ratio
analysis on profitability. Although financial planning helps to reduce uncertainties in
changing market trends, uncertainty to hindrance on growth of the company by ensuring
stability and profitability.
Toward companies as John Lewis Partnership is important point on framing, objectives,
polices, procedure, and financial knowledgeable pool and view, as details on profit and losses
which one will be shared commonly by theirs professional service accountants, solicitors and
operational management (limited to 20 persons as partnership).
LO 3. A partial ANALISYS list for business expenses and operational expenses: Starting
Inventory, Rent deposit, down payment on property, and down payment on equipment, utility
and set up fee. Also Operating expenses include the cost such as keeping the business running
which should make sense as monthly payment, view and calculated monthly: Salary ( if coworkers or staff), Rent or mortgage payments, Telecommunications, Utilities, Raw materials,
Storage, Distribution, Promotion, Loan Payments, Office Suppliers, Maintenance,
The John Lewis stepping on little by little have propelled the brand into the nations hearts.
Choosing an investment option is an important decision which one has a big impact on
investing for income or investing for growth.
Budgeting Decisions Is the process of planning for projects on assets for a period greater than
one year, in businesses it is important for many reasons. Replacement decisions to maintain
the company, Market expansion of existing product. When making the decision to purchase
an asset, managers need to forecast the revenue for over the life of the asset. Although the
measurement to evaluate projects using IRR and NPV where using IRR is not as effective as
using NPV to Discount Cash flow.
Bellow I will view the Performance in 2012 of John Lewis Partnership, Waitrose, and John
Lewis, Where sale excluding VAT are gross sale net of value added tax.
The main financial statement from different businesses (as comparing them on basis). In
addition the different companies either fallow the calendar year (beginning of January) or
ending December or they fallow their own fiscal year, also (quarterly or whenever
necessarily). Financial statements according to (SFAC), provide information useful in
investment and credit decisions and in assessing cash flow prospects
Accountants of the companies prepare statements on the assumptions that each enterprise is a
separate entity. As segment of John Lewis Partnership I have viewed on basis few of their
activity as subsidiary on comparison of their statement. The elimination of intercompany
transactions between parent and subsidiary companies is when a parent company owns less
than 100% of the subsidiarys stock, the part owned by outside investors is referred as
minority interest.
As example: The Working Capital of John Lewis for the period of one year of 2012 is
1,637.7 m
Working Capital can be found by Current Liabilities Current Assets = Working Capital
(calculating the working capital, indicate whether or not it can afford to pay its bills). Another
equation is:
Liability + Equity = Assets.
Also
Liability Assets = Equity.
Current Assets represent the assets that a firm expects to turn into cash after one year.
Current Liabilities represent the liabilities that a firm expects to pay within one year.
Note
Fixed Assets = frequently called plant and equipment (buildings, musical and lighting
equipment and drinks equipment behind the bar, setting and table).
Current assets =are assets that are likely to be changed into cash.
Other Assets = resources not listed here but if incuse is kind of (intangibles goodwill,
trademark, patents and tangibles is outdated equipment which can be sold to the scrap yard).
Working Capital is called also Nett Current Assets.
Equity is the value, after John Lewis Partnership has paid all liabilities (is what is left after
you subtract the value of all liabilities).
Equity is also referred as shareholder equity
The value of Total Assets can be found by (Fixed Assets + Current Assets) Current
Liabilities = Total assets.
It is important to look after it day by day at the cash flow (working capital) to ensure that the
cost of finance is effectively managed when the finance is put to work. The John Lewis
Partnership and Financial Performance which shows how much profit or loss has the
company made at the end of accounting period.
Note
The John Lewis Partnership has a higher Turnover or Sales Revenue is the annual sale
volume net of all discounts and sale taxes, also the income from selling goods or services for
the given year period.
Cost of Sale is the main cost directly linked to the goods sold by John Lewis (calculate as
opening stock + purchase closing).
Revenue is the gross income (Revs).
Below is a column chart of the results of increase in sale from the previous years.
2009
2010
Series 1
2011
Column2
2012
Column1
As I have stated above the balance sheet and the profit and loss account is part of historically
record which is prepared at the end of each year. Although the Budgetary Annual Plan the
Cash Flow and Breakeven, where all this information put together will draw from the total
Budgetary Plan.
For example a non-profit organisation may not need to forecast all this comparison of
statements mentioned before but it is still need to know if it is breakeven. The analysis of
break-even point is widely used by production management and management of accounts for
the company and its based on categorising the production cost as variable (costs that change
when the production output change) and fixed cost (costs not directly related to the volume of
production). In order to understand the total variable and fixed cost are compared with sale
revenue in order to determine the sale volume. The Break-even point is sale value of
production where the company doesnt loss neither make profit.
Bellow you will see the break-even chart (at the intersection of two line
A and C).
Related to the diagram above:
The line OA
represent the
variation of
income at
varying level of
production
activity (output).
Line OB
represent the
total fixed cost in
the business (as
output increase,
variable coast are
incurred and as
mining, where
total cost (fixed
+variable) also
increase. At low
level of output, Costs are greater than Income. At the intersection of point P, cost
are exactly equal to income (neither profit nor loss is made).
Better quality product will increase sale by 6% and will increase the company current
position further among its competitors.
procedure in investment can be to not change the machinery which you work with and just do
the minimum necessary to maintain the existing machinery and outsourcing production to a
supplier and invest in alternative projects instead. Timescale can be an issue on investment
appraisal where shareholders may prefer an investment that are expected a quick return as
Payback as short-term expectation to provide annual cash flow and its helps to avoid giving
to much weight to risk, long-term projections. Related to John Lewis Partnership as we have
seen in their statements the company under their management commitment has identified
these type of decision making into better investment appraisal by taking benefits of them.
Further appraising any investment from different angles can be most effective way of
deciding whether it is worth.
The Marketing sections of the business plan will analyse the financial planning in which the
businesses operate.
9.3
8.8
9
7.3
6.6
6
5
4
3
2
1
0
Year 02010 0
Year 02011 0
Series 1
Year 02013 0
Column1
Year 02014 0
Column2
4.8
4.5
4.7
3.8
4.1
4.3
4.5
4
4.5
4.2
3.8 3.9
3.5
2.8
1.9
1.5
1
0
Year 2012
Year 2011
Year 2010
SerieGross Profit
Opetating Profit
Net Profit
year 2009
Note
Total assets (TA), Equity (E) and Total liabilities (TL) where TA = E + TL
The law of bankruptcy for small businesses and large national businesses are not so easy
applied to international governments.
If any project passes the first test can be took in consideration the next more complex stage
being clear of their assumptions and how reliable they are, assessing the expected return and
using a range of different assumptions. Such as the discount cash flow (DCF) allows to put
the cash flows received into two different times on a comparable basis to evaluate potential
investments of methods appraisal. The NPV (net present value) and IRR (internal rate of
return).
The NPV calculate the present value of all cash flow associated with the investment (the
initial investment outflow and the future cash flow returns). The higher the NPV the better.
Also the NPV help as to decide whether an investment will add value in the long run and
compare different investment options and finally decide whether to introduce a new product.
In addition its additive if there are two or more projects and the project choices made on the
basis of NPV are value-maximising and should lead of shareholders wealth. Some
disadvantage is that it is not easy to explain to managers, it is relatively complex and its
require knowledge of the Cost of Capital
The NPV > 0 would add value to the company (viable and accepted project). If the NPV < 0
subtract value from the company (nonviable and the project is rejected.)
IRR it is another useful metric tool on analysing an investment. The higher the IRR the better.
The IRR > Cost of Capital is a (viable and accepted project). If the IRR < Cost capital is a
(nonviable and the project is rejected). In addition an IRR is the discount rate that makes a
project to break-even.
One of the advantages of NPV and IRR is that they take into account the time value of money
(e.g. the money we expect sooner are worth more to us than the money we expect further in
the future).
Methods of calculation:
Liquidity are:
Current ratio current assets / current liability.
Acid test (current assets inventory) / current liabilities.
Receivables days: receivables / credit sales x 365 days.
Inventory days: Inventory / cost of sale x 365 days.
Payable days: Payables / purchases (or cost of sales) x 365 days.
OPPORTING PROFIT = OPORTUNITY PROFIT
CAPITAL EMPLOYED
REVENUE
REVENUE
CAPITAL EMPLOYED
company, organisation and industries, or other entity, such as appraisal evaluation in choosing
and making various decision into the right direction.
The particular investment of Private sector where is not easy controlled by the Govt, mostly
aims to make profit through the business action.
The balance sheet of the period from 2011, 2012 and 2013 of John Lewis Partnership which
one is a consolidate statement not just simple statement. The consolidate statement is
produced by the parent company and generally viewed by potentials investors, government
agencies, or in case of applying for loan or grants. Also the consolidate statement combines
the information from subsidiaries companies and the entire enterprise is treated as single
entity for accounting purpose. The Balance Sheet records the total of assets, liabilities and
equities (net worth). This kind of statement provides two kinds of view, one is what the
sources the business owns and they are situated in different columns as assets, liability and
equity. Although the Income statement and Cash flow. All of them stated before represent a
true faire view of the company position.
The both accountant statement as balance sheet (capital, assets and liability), and profit and
loss account (profitability and efficiency of trading over the year) are produced at the end of
each year, both as snapshot is to understand where the trading and profitability of the
company John Lewis Partnership are.
The three keys as financial statement are Balance sheet, Income Statement and Cash flow.The
Balance sheet is mainly tell the position of the company for a period of time (yearly) and
comprise a number of categories within three main elements assets, liabilities and
shareholders equity.The Balance sheet and Income statement shows at the beginning and at
the end of an accounting period the positions of company. Where shows doesnt directly
analyses of some of the key changes which has taken place in company financial position
(e.g. how much capital expenditure for equipment, machinery and buildings has the company
made). The financial performance of the company which has been achieved during the
accounting period its shown in profit &loss account.
The Cash Flow summarise cash inflow and cash outflow and calculate the net change in the
cash position for the company. An important implication including Cash flow is the
Budgetary plan which attempt to assess the viability of new potential for new businesses.
Balance Sheet of The Company John Lewis for the years 2011, 2012 and 2013.
BALANCE SHEET 2013,
2012 and 2011
Notes
Non-Current Assets
Investments
1
2
Total assets
Current Liability
Trade and other payable
1
8
Non-Current Liabilities
Borrowing
1
7
Total Liabilities
Net Assets
Equities
Shared Capitals
1
1
9
Other Reserves
Retaining Earnings
Total Equities
1
3
28/01/2013.
m
31/01/2012.
m
31/01/2011.
m
102.3
87.4
70.2
102.3
87.4
70,2
(2.0)
(1.8)
(1.4)
(88.9)
(74.4)
(57.7)
(90.9)
11.4
(76.2)
11.2
(59.1)
11.1
0.6
0.6
0.6
5.0
5.8
11.4
5.0
5.6
11.2
5.0
5.5
11,1
It is important to look after it day by day at the cash flow (working capital) to ensure that the
cost of finance is effectively managed when the finance is put to work. The John Lewis
Partnership and Financial Performance which shows how much profit or loss has the
company made at the end of accounting period. This kind of statement reflect on the fiscal
year, the board of accountants should prepare the second one (profit &loss account) based on
calendar year.
Below see the Consolidate Income Statement (profit & loss account) of John Lewis
Company, 2011, 2012 and 2013.
2
2
2
3
2
4
4
26/01/2012,
28/01/2012,
29/01/ 2011,
12 Month
12 Month
12 Month
statement. m statement.
statement.
m
m
Turnover
8,758.6
8,361.8
Gross Sale
9,541.3
8,729.5
8,206.3
Revenue
8,465.5
7,758.6
7,361.8
(cost of sales)
(5,640.1)
(5,166.5)
(4,878.7)
Gross Profit
2,825.4
2,592.1
2,483.1
Other operating income
64.1
59.6
53.7
Operating expenses
2.437.1
2,258.4
2,105.8
Operating profit
452.4
393.3
431.0
Finance cost
(82.9)
(72.3)
(69.3)
Finance income
40.1
32.8
6.2
Profit before
409.6
353.8
367.9
Partnership bonus
and tax
Partnership bonus
5 Profit before tax
6 Taxation
Profit for the year
(210.8)
(165.2)
(194.5)
198.8
(47.1)
151.7
188.6
(52.4)
136.2
173.4
(46.0)
127.4
26/01/201
3 Month
statement
. m
979.0
(53.5)
(164.3)
(125.0)
(4.9)
631.3
28/01/201
2,
12 Month
statement
. m
759.1
(33.7)
(194.5)
(2.3)
528.6
29/01/
2011,
12 Month
statement
. m
745.1
(27.5)
(151.2)
(150.0)
(2.0)
414.4
(261.5)
(95.5)
1.9
(425.7)
88.4
11.8
(447.9)
43.5
3.7
1.9
(354.2)
2.4
(499.9)
3.1
(484.6)
(56.8)
(3.5)
(54.7)
(0.7)
(76.7)
(0.4)
(0.2)
(1.7)
14.5
(242.0)
(289.7)
(0.2)
(1.3)
71.5
(0.2)
(1.1)
151.6
14.6
73.2
(12.6)
43.3
3.0
490.7
447.4
444.4
478.1
490.7
447.4
120.0
83.6
84.2
414.4
(56.3)
478.1
467.2
(60.1)
490.7
428.5
(65.3)
447.4
From different type of businesses and difference of statements I will mention the follow.
International transactions and operations is for businesses when occur between companies in
different countries as changes in exchange rates can cause companies to have foreign
currency transactions as gains and losses on credit transactions and must be disclosed in the
financial statement . The personal financial statement should be prepared on accrual basis.
Also is an individual or group where accountant prepare personal financial statement for
obtaining bank loan, income tax planning, retirement planning, gift and estate planning and
the public disclosure of financial affairs.
Profit before partnership bonus and tax down 14.1m, 3.8% to 353.8m.
Waitrose:
John Lewis:
SOLE
TRADER
Company J Bloggy
12,000
68,000
80,000
14,000
66,000
84,000
1,400
1,600
8,800
1,200
900
2,000
3,000
18,000
65,100
2,000
67,100
As is stated in the annual report that the John Lewis stepping on little by little have propel the
brand into the nations hearts.
CONCLUSION
John Lewis Partnership in the past has some difficulties (when it comes to make profit) but
recent financial figure show, also much stronger managerial control and improvement by
changing strategy. Which is mean that John Lewis Partnership it is still good potential for
investors into the future and a substantial return on dividends for their shareholders.
CRITICIZE
Financial planning is a continuous process which helps to make sensible decisions