The following study is related to the analysis of financial statement of Avenging and Venturous Retail Property Fund. Analyzing the results it is concluded that Venturous Retail Property Fund has performed better. Cash flows and equity of Avenging limited needs to be improved whereas Venturous Retail Property Fund is incapable of showing their income tax expenses since beneficiaries of the company are entitled to the profits of the company.
A financial statement marks the position of a company financially during a specific time. Companies around the world are mandated to have an elaborate and accurate financial statement of their businesses. A financial statement of a company includes their cash flow statement, income statement and their balance sheet. Companies are expected to create a financial statement regarding their business operations in a fair and truthful way. A company’s financial statement describes the net profits, losses, taxes and all This study is on the different financial statements of Avenging limited and Venturous Retail Property Fund. Both these companies are listed with the Australian Security Exchange (SAX). The focus areas of this analysis will be on balance sheet statements of the companies, cash flow statements and on the comprehensive income statements of both these companies. It will also examine the financial condition of both these companies in comparison to each other for the time span of 2015 to 2017 financial year. This study will also examine the corporate income tax of both these companies.
Owner’s equity is an important element, which portrays the financial position of a company (Crane ET AL., 2015). With a high owners’ equity, the financial position of the company becomes stronger. Owners’ equity also implies the amount invested by the owners of a company in the business and does not calculate the withdrawals made by the owners from the net capital of the
. Increase in owners’ equity shows the investing a company has received from the owners. The improvement in equity shows the financial growth and stability of a company.
The following are the equity items for Venturous Retail Property Fund for the years 2015, 2016 and 2017
He years. The company in these three years’ time span have also achieved i Comparing both the companies’ it is visible that Venturous Retail Property Fund is in a better financial condition than Avenging limited. The vestment recorded for Venturous Retail Property Fund is greater with nth increase in owner equities. Thus, the financial stability and position of the company is better than Avenging, whose equity shares have not increased at a similar improvement in their retained earnings.Debt to equity ratio of a company determines the amount of debt capital and equity capital in the structure of a business (Unitize & Tina, 2014). Debt to equity ratio of a company increases when the amount of debt recurred by the company is more than the total amount of equity available to the company. With an increased debt to equity ratio, the risk of a financial slump in the company is imminent. Comparing the debt to equity ratio of both the companies, it is analysed that the debt to equity ratio for Avenging was 34.89 and for Venturous Retail Property Fund was 57.54. This indicates that Venturous had used more debt capital than Avenging making, Venturous Retail Property Fund at a higher risk than Jennings limited. The debt to equity ratio for companies differ according to the financial stability differences in their financial statements.