InternshipReport—FinancialAnalysisofaTeashopSTUDENT:STUDENTNO.:COLLEGE:MAJOR:INSTRUCTOR:AbstractWithinmyinternshipintheteashop,Iworkedastheaccountantassistantfirstandlaterasaninventorycounter.Iunderstoodhowtheaccountingprocessesactuallyworkinalocalcompanyandhowdidtheycalculatethevalueofinventories.Basedontherelevantknowledgeonourbooks,suchascostflowassumption,inventorysystemandmeasures,financialratios,Ibrieflyanalyzedthesesystemsintheteashop.Theteashopislegitimatedtosellallsortsoftea,themostpopularonesaregreentea,redteaandoolong.Itisasoleproprietorshipcompany.Itsstatusdeterminesittoadoptthosesystemandmethodsthatareeasy,cost-savingandconvenienttopractice.Asaresult,itsinventorysystemandcostflowassumptionarealldeterminedbasedontherule.Foraccountingratios,theteashopitselfdidnotprepareacompletebalancesheetbecauseitisnotlistedinthestockmarket.SoIonlyincludessomefinancialdatanecessaryfortheanalysis.【KeyWords】soleproprietorship;teashop;inventorysystem;costflowassumption;accountingratio畢業(yè)生實習報告—對一種茶莊的財務分析【摘要】三月至四月,我在茶莊進行了為期一種月的實習。這篇報告重要統(tǒng)計了我實習期的工作,以及根據本專業(yè)所學的會計方面的知識對本茶莊的會計運用的分析,涉及盤存辦法、某些財務指標的解釋和分析等,并根據實際狀況,給出了某些對應的改善方法?！竞诵脑~】財務指標;茶莊;盤存法;個體公司Content1.Introduction(42.Analysistool(52.1.Financialratios(52.2.Inventorysystemandmeasurement(62.3.Costflowassumption(73.FinancialRatioanalysis(84.Inventorysystemanalysis(95.Costflowassumptionanalysis(96.Conclusion(117.Reference(128.Acknowledgements(131.IntroductionMyinternshipperiodlastedfrommiddleMarchtotheendofmiddleApril.Myjobistochecktheinventorywiththepersoninchargeofcheckingandassisttheaccountant.Duringthisperiod,Ihavelearnedhowateashoporganizesandtheaccountingprocessincludingmakingjournalentries,preparingaccountingfilesandcheckinginventories.Inthereality,acompanyalwayshastomakedecisionsthatourbookswillnevercover.Somearecloselyrelatedwiththesocietyenvironment,suchasguanxi.Thuswecanlearnthebasicknowledgefrombooks,buthowtousethemproperlyinthesocietyisanotherkindofknowledgeaswell.Themaincustomerisadultmen,somepurelyenjoythetasteoftea,andsomebuyteaasapresenttoothers.Also,asmallrangeofwomencametobuyteaaswell,andtheytoldmethattheythoughtdrinkingteacanhelploseweight,especiallyoolong.Inordertopromotethesales,theteashophascarriedoutapromotionwhichspecializedondifferentkindsofconsumertargetsanddifferentconsumerneeds.2.AnalysisTool2.1.FinancialratiosToanalysisacompany’sperformance,therearemanydifferentways,onesignificantandeasywayistocalculateratios,throughthosenumbers,wecanhowexactlyacompanyperforms.Foraprivatecompany,therearemainly4kindsofratios:(1Companyprofitabilityratios:theyareusedtoevaluatehoweffectiveacompanyhasbeeninmeetingitsoverallprofitobjectives,particularlyinrelationtotheresourcesinvested.Including:Profitmargin:usedtoevaluateacompany’sefficiencyincontrollingcostsandexpensesinrelationtosales.Profitmargin=netincome/netsalesReturnontotalassets:indicateshowefficientlyacompanyusesitseconomicresources.Returnontotalassets:netincome/totalassets(2Liquidityratios:usedtoevaluateacompany’sabilitytomeetitscurrentmaturingfinancialobligations.Theseratiosgenerallyinvolveallormostofthecomponentsofacompany’sworkingcapital.Including:Currentratio:probablythemostcommonlyusedratiotoevaluateacompany’sshort-runliquidity.Sometimesitisreferredtoastheworkingcapitalratio.Currentratio=currentassets/currentliabilitiesAcid-testratio:amoreseveretestofacompany’sshort-termdebt-payingabilities.Acid-testratio=quickassets/currentliabilities(3Activityratios:areusedtoevaluatetheliquidityofcertaincurrentassetsbyestimatingthelengthofvarioussegmentsofacompany’soperatingcycle.Theratiosareindicatorsoftheefficiencywithwhichthecompanyusesitsshort-termeconomicresources.Inventoryturnover:indicatesthenumberiftimestheinventoryis“turnedover”orsoldduringthatperiod.Inventoryturnover=costofgoodssold/averageinventoryReceivablesturnover:indicateshowmanytimesreceivablesare“turnedover”orcollectedeachperiod.Receivablesturnover=netcreditsales/averagenetreceivablesPayablesturnover:measuresthenumberoftimesaccountspayableturnoverduringtheyear.Payablesturnover=costofgoodssold/averageaccountspayable(4Stabilityratios:usedtoevaluatethelong-runsolvencyandstabilityofacompany.Theyprovideevidenceofthesafetyoftheinvestmentsinthecompanybylong-termbondholders,preferredstockholders,andcommonstockholders.Debtratio:indicatesthepercentageoftotalassetscontributedbycreditors.Debtratio=totalliabilities/totalassetsTimesinterestearned:usedtoevaluatetheabilityofacompanytocoveritsinterestobligationsthroughitsannualearnings.Itisameasureofthesafetyofcreditors’investmentsinthecompany.Timesinterestearned=pretaxoperatingincome/interestexpense2.2.InventorysystemandmeasurementAcompanymayaccountforinventoryquantitiesandcostsusingeithertheperpetualsystemortheperiodicsystem.Perpetualinventorysystem:requiresthecompanytomaintainacontinuousrecordofthephysicalquantitiesinitsinventory.Itrecordsthepurchase,orproduction,anduseofeachitemofinventoryindetailedsubsidiaryrecords,althoughoftenonlyinunitswithoutincludingcost.Periodicinventorysystem:donotrequirethecompanytomaintainacontinuousrecordofthephysicalquantities(orcostsofinventoryonhand.Ittakesphysicalcountsperiodically,whichshouldbeatleastonceayearandgenerallyattheendoftheyear.2.3.CostflowassumptionsBecauseofthevariationsinprice,thecostofeachinventorymaybedifferent.Andaproblemoccurred,howtorecordthecostofinventory?Costflowassumptionssolvedthisproblem.Themajorcostflowassumptionscurrentlyusedarelistedinthefollowing:Specificidentification:underthis,acompanyidentifieseachunitsoldandeachunitremainingintheendinginventoryandincludestheactualcostsofthoseunitsincostofgoodssoldandendinginventory,respectively.First-in,first-out(FIFO:underthis,acompanyincludestheearliestcostsincurredinthecostofgoodssold,andincludesthemostrecentcostsintheendinginventory.Inotherwords,itassumesthatthegoodspurchasedfirstaresoldoutfirst.Averagecost:underthisassumption,acompanyconsidersallthecostsandunitstobecomingledsothatnoindividualunitsorcostsareidentified.Itisalsoknownastheweightedaveragemethod.Inotherwords,itmixedallinventoriesandcalculatedanaveragecost.Last-in,first-out(LIFO:underthisassumption,acompanyincludesthemostrecentcostsincurredinthecostofgoodssold,andincludestheearliestcostsintheendinginventory.Inotherwords,itassumesthatgoodspurchasedinthelastaresoldoutfirst.ItistheoppositeofFIFO.3.FinancialRatioanalysisTheteashopisasoleproprietorshipcompany.Takingsomenumbersfromthenetincomesheetandassetssection,wecangetthefollowinganalysisratios:Profitmargin:14.1%ReturnonTotalAssets:48%InventoryTurnover:17.36timesDebtratio:0Receivablesturnover:1000timesProfitmarginis14.1%,thatmeanscostsandexpensesoccupy85.9%oftotalsales.Agreatmanycostsandexpensesincurredfromthefirststepinproductiontothefinalsale.Thecostofrawmaterialandlaborprobablyoccupyahighpercentinthetotalcost.Inordertobemoreefficientinsales,ithastodecreasecostsandexpenses.Findingnewwaystodecreasecostisimportantbecauseprofitistheessentialofacompany,andthenprofitmarginwillgoup.Returnontotalassetsis14.2%,itmeansnetincomeis14.2%oftotalassets.Differentindustrymayhavedifferentlevelsofreturnontotalassets.Intheteashopindustry,sufficientinventoryisthemostimportantaspect.Onlywithasmallshopandoneortwoemployees,canateashopopen.Thusithasnottoinvestalotinfixedassets.Asaresult,returnontotalassetsratiois48%,whichisprettyhighcomparedwithotherindustries.Tofurtherimprovethisratio,theteashopcanestimatetheneedsofteaandstorethemostefficientnumberoftea.Thiscandecreasetheinventoryvalueandmakethecashflowsmorefluently.Inventoryturnoveris17.36times.Inventorycanbesold17.36timesayear.Generally,thehighertheinventoryturnover,themoreeffectivethecompanyisintheoperations,thelessertheamountofinvestmentthatmustbetiedupininventoryandtheshortertheoperatingcyclenecessarytoreplenishcash.Andfortheteashop,inventoryturnoverisnotbad,thusitenablesthecompanytohavemoremoneytodootheroperatingactivities.Debtratiois0,meanstheteashopborrowsnothing,andtheownerprovidesallthefundsneeded.AsIhavementionedbefore,itisasoleproprietorshipcompany.0debtratioindicatesitcanborrowsomemoneyfrombanks,orotherpeople,aslongastheinterestrateisnothigh,andthebenefitofborrowingmoneyisgreaterthanthepitfalls.Receivablesturnoveris1000times,accountreceivablesarecollected1000timesayear.Usually,customerspayatthetimeofpurchasingtea,onlythosecustomerswhobuyalargeamountofteaandareacquaintanceoftheownercanpaylater.Andaquickerreceivablescollectionperiodenablesthecompanytoinvestmore.4.InventorysystemanalysisTheteashopusestheperiodicinventorysystem,becauseteaisrelativelylowcostandeasytocount.Also,installingtheperpetualinventorysystemcostsalot,thebenefitsametobemuchsmallerthantheexpenses,soitisnotnecessarytoinstalltheperpetualinventorysystem.Usually,attheendofeachmonth,thepersoninchargeofcheckinginventoriesgoesintothestoragesandcountinventories.5.CostflowassumptionanalysisTheteashopadoptstheperiodicinventorysystem,itdoesnotrecordeachunitsold,soitisreallydifficulttousespecificidentificationassumption,whichisanexpensiveandlaborconsumingwork.FIFOandLIFOassumptionsneedmoreenergytoo,becausetheyrequireadetailedrecordoftheinventories.Usually,attheendofeachmonth,thepersoninchargeofcheckinginventorieswillcounttheremainingtea.Theycalculateanaveragecostfirstbydividingthetotalcostsofteapurchasedbythetotalquantity.Thentheycangetthecostoftea,itisjusttheproductoftheendingquantityandtheaveragecost.Differentcostflowassumptionsused,theeffectsontaxandincomemaybedifferent.Fortheteashop,theaveragecostflowassumptioniseasytouse,buthasadisadvantageintax.In,thepriceisgoingup,andthenitcanusethelast-in,first-outflowassumptioninordertopaylesstax.106.ConclusionAftermyinternshipperiodintheteashop,Ihavelearnedalot.Theknowledgeonbooksmaynotsuitallcompaniesinthereality,theyhavetothinkoutthebestandconvenientwaytomanagethecompany,tocontrolthemanufacturingp