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这篇报告主要分析 Tick-Tock公司2005-2007年度财务报告。同时，报告提供是否以275000美元购买Tick-Tock或继续寻找另一个业务的建议。本财务报表分为三个部分：盈利能力，流动性和财务稳定性。第一部分是盈利能力，重点对投资回报不同方面以及投资回报率进行分析。第二部分是流动性，这项比率主要衡量公司支付短期债务的能力，2007年度流动比率表明公司有一个很好的短期财务实力满足其流动负债。第三部分阐述了Tick-Tock 公司的财务稳定性，这表明债权人提供的资产比例在两年间增加了。

Accounting Analysis

The report focus on the financial statement analysis of Tick-Tock during 2005 to 2007.And at the same time provides the recommendation whether to purchase Tick-Tock for $275,000 or continue looking for another business. This financial statement has been divided into three segments: profitability, liquidity and financial stability .The first part is profitability which focuses on different aspect of return on investment & evaluating operating performance ratios. And the second segment concrete on the liquidity, as this ratio measures a company's ability to pay short-term obligations, the current ratio of 2007 shows that the firm has a good short-term financial strength to meet its current liabilities. The third part illustrates the financial stability of Tick-Tock Company, which indicates the proportion of assets provided by creditors became more during the two years.

Probability
From the analysis of the data provide, we can know that the return on total asset ratio of 2005 is 37.36%, but in 2007 is 26.06%, the ratio has decreased by 11.3%.This means that the company become less profit. The return on ordinary shareholders’ equity ratio also decreased from 32.82% of 2005 to 24.17% of 2007, this ratio measures the return earned on assets provided by owners, and the decreased ratio indicates the company using the shareholder’s equity low efficient. These two ratios indicate that the business is making less profitable return on their borrowed money during 2005 to 2007. From the horizontal analysis which begins with the monetary amount change, we can see that compared to 2006, in 2007 net sales decreased by 2.21%, which leads directly to gross profit dropping by 4.35%.And the ratio also shows that although the profit after tax has increased from 2005 to 2006, and then decreased in 2007. As the dividend payout ratio measures the percentage of profits paid out to ordinary shareholders, a 148% dividend payout ratio in 2007 indicates the business paid more than one time of its profit as dividends and it has not enough big power for growing. So according to these ratios Tick-Tock is making a decreasing and not satisfactory profit during 2005 to 2007.

Liquidity
The current ratio of Tick Tock Pty Ltd from 18.83 in 2005 decrease to 7.41 in 2006 and then decline to 4.81 in 2007. It indicates this company has the ability to meet its short-term debt from its current. Maybe due to this company had many assents on hand, they used the assets to do some investments and other stuff so that reduced the assets and they wanted to make current assents more efficient and make more money. In terms of quick ratio which is a more rigorous measure of short-term liquidity. In 2005 and 2006, the quick ratio was 2.33 and 1.24, they mean the company can use the cash and receivable cover its current liabilities. In 2007, however, it decreased to below one; it was 0.85 which illustrate that the company has not a good ability to pay off the immediate demands of creditors not by the sales of