Wonderfun plc Essay Example | Topics and Well Written Essays - 2000 words

Wonderfun plc - Essay Example To analyse the current position of Wonderfun, the trends in financial ratios have been seen and the performance of company with other companies has been compared by taking the industry averages. Based on analysis, few recommendations have been provided to the company and investors. The financial ratios analysis has shown that Wonderfun PLC has been performing above than market average during the period 2005-2008. However, the performance of company has been declining slightly from 2005-2008. The year 2009 appears to be a tough year for the company, as its profits have reduced and debt and liabilities have increased. Still, the company has paid the same dividend in 2009, as it has paid in 2008. Moreover, Wonderfun has also pursued expansion strategy in 2009, which have enhanced the liabilities of the company; however, the sales of company are improving after this expansion. It has been recommended to the company that it can improve its performance in coming years by reducing its operating expenses such as selling and distribution costs. Moreover, it has been suggested to investors that Wonderfun is still a good company to invest in because of its excellent past performance, declining industry performance in 2009 (which also affected company) and potential of increasing revenues because of expansion strategy. Various groups need financial information and the nature of their uses also varies. The main groups of users may include owners of the company, managers, prospective owners, banks or lenders, suppliers of materials, government bodies, related industry regulatory authorities and employees or unions (ACS). The needs of analysis for these users groups also vary for example, investors may want information to decide whether to invest in the company or not. The suppliers of materials may need information to evaluate whether the company is profitable enough to pay back trade

Economic Health Memo Term Paper Example | Topics and Well Written Essays - 250 words

Economic Health Memo - Term Paper Example In fact, GDP is very easy to â€Å"game† (Ritholtz, 2010). â€Å"[Y]ou simply under-report inflation, and GDP appears to be better than it is†. Since inflation depends on counting the value of a good last year and doing so across many goods to make sure that it's not just one or two goods that grew in price for other reasons, there's a lot of subjectivity and uncertainty in making it. GDP is also not as helpful as it could be because it positively counts negative externalities (Ritholtz, 2010). That means that pollution, which is a bad thing, is counted as a good thing because it makes people spend money to go to the doctor or buy new houses to move. â€Å"If you buy a car, the GDP goes up. If you cut a tree, the GDP goes up. But if you preserve the tree, the GDP does not grow. Now you have to decide whether you need the tree or the GDP† (Sharma, 2010). Thus, it is hard to use the GDP to predict the business cycle, and economists are looking for a better indicato r of economic health. Fiscal policies are guided by economic facts and by measures like the GDP: As we've seen already, the GDP's inadequacies can cause lawmakers concerned only with increasing the GDP to increase externalities such as injured workers, ecological damage, and health costs as a byproduct, and not reap the consequences or even be aware of them. But what about fiscal policy and unemployment? The jury is out as to whether reducing or increasing taxes, reducing or increasing spending, etc. is better for production and employment.