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论文题目：fiancial accounting report
论文语言：英语论文 English
论文专业：accounting
字数：1400
学校国家：加拿大 Canada
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您的学校：university of saskatchewan 加拿大医学博士类前十
论文用于：BA Term Paper 本科课程作业

Advise for Second Round Electronics acquiring the Custom App Company

Custom App Company(CAC) is a electronics reconditioned company, the mainly operations includes reconditioned electronics、installation、corporate training and custom programming services, it has been developed for five years, and famous for the innovation work, it only has a few employees, and smaller than SRE, but it has reported good growth in future. From the operations of https://www.51lunwen.org/aomenzuoye/2012/0118/1001037869.html company, it can boost the market share and profit for the Second Round Electronics, and formal the complementary business and synergies effect.

The scale of company analysis
At the end of June 30, 2011, the total assets of CAC is $ 233400, the total shareholders’ equity is $ 105149, while the total revenues is $ 390000, the net income is 7859, although the scale of CAC is smaller than SRE, the scale of CAC has the similar level with the SRE, from the scale analysis, the CAC is suitable for SRE to acquire. It not only improve the scale and profit of SRE, but also decrease the competition,

The profitability of company analysis
Table 1 presents that the total revenue of CAC is stable, and it kept about $ 390000 from 2009 to 2011, while due to the decrease of gross profit ratio, the net income of CAC decrease from 2009 to 2011。The ROE and ROA also decrease every year. So the profitability of CAC decrease every year, the mainly reasons is the cost https://www.51lunwen.org/Accounting/ and the selling, general and administrative cost increase. Compare to 2010, because the company buy the computer equipment. The amortization expense increase 6000 in 2011. Actually due to the company hired an additional employee to meet the increased volume of service contracts, so the selling, general and administrative cost increase in 2011.
Table 1 the profitability of CAC
Items($) 2009 2010 2011
Total Revenue 390000 388500 390000
Net Income  10200 26010 7850
Gross Profit ratio 63.46% 63.32% 59.23%
Expense Ratio 60.38% 55.44% 56.86%
Net Income Ratio 2.62% 6.69% 2.02%
Requre Of Equlity  N/A 25.65% 7.15%
Requre Of Asset  N/A 18.06% 5.85%

The solvency of company analysis
The operational capacity of company analysis
The growth ability of CAC analysis
The cash flow situation of CAC
Whether acquire the CAC is a good choice?