Financial Analysis OrchardsAnthony’s OrchardName:Course:Instructor’s name:DateAnthony Orchards financial analysisIntroductionAnthony’s orchard is family owned company that needs to perform intense financial analysis in order to continued being viable and profitable in the future. Decisions that are made by the management are based on the financial health of the company that is after carrying out a timely and accurate analysis using budgeting and control methods. There are plans by the company to make aggressive plans for the future which include purchasing an apple press that will enable the company to lounge a new line of prepared apple. The company also plans on searching for new orchards throughout the country all with an aim of diversifying the types of apples that the company are making. The revenue target of the company is to exceed $25 million dollars by 2015. All these strategies can only be achieved through deep understanding of the current financial position of the company.Financial position.There are three financial statements that will be used in providing the financial position of Anthony’s orchard currently. The purpose of the statement is to find out the cash movements that took place, the total number of wealth generated and the overall accumulated wealth of the business. To begin with it is important to illustrate the cash movement of the company as at 2011. Cash is an important resource that is required by nearly all businesses to fully function and run effectively. Cash will determine if Anthony’s orchard have the ability to repay all debts or not. It would be much easier for the company to achieve new strategies if they have the ability to repay debts and acquire inventories.

[pic 1]The cash flow statement is broken down to four quarters in the financial year. Cash from the sales is equal throughout the three quarters at an average of 2,751,302. The company incurred a total of 7,934,291 in making purchases of apples during the year. There were purchases by the company only during the first quarter of the year. This is the reason why the total cash expenses before interest for the first quarter is high while the subsequent quarters are less. The cash flow from operations for the first quarter is -6,549,959. The second and third quarter saw an increase to 1,422,157 and 2,265,694 during the last quarter. The company overall witnessed a negative value in terms of cash flows. The negative value in cash flows indicates that the company financial position is not such promising since most of the cash flow go towards covering for expenses. Income statementThe report on cash flow is not enough to tell the financial position of Anthony’s orchard that is why there is need to find out the profit generated through the study of income statement.  [pic 2]Community events generate the highest gross margin out of all the three segments of the company. Administration costs is what is weighing down the profits that could be made by the company. Prepared apples has the highest value in net revenue out of while the least is the community events. Overall the company did not achieve the profit that it had budgeted for. The budgeted net income was 519,517 while the actual net income was 371,147.

[pc:1340.13] The first quarter of the year has seen a decrease in apples sales at 5% from the previous year. The lower sales were due to more people buying apples while the more apple that sold was the second largest category of apples of the year while prices had been improving. The retail sales of apple fell to -4,917,000 from -2,383,000 for the first three quarters of the year. As was the case at the beginning, apples sales were increasing and so was the retail sales. On average all other vendors, mainly the retailers and wholesale shops, were also sold more apple during the first three quarters of the year. On the other hand the sales were also decreasing when sales are on the increase, although the sales were increasing. This is also a result of decreased production due to the demand and also, as the production decreased, the demand decreased. In terms of the other three categories of apple sales this resulted in lower demand as well. The decrease was a result of the competition between the retailers (i.e. higher prices that have come from Apple). The increase in consumption was not sufficient for the sales. The more apples was made the more the supply and demand increased from the retail and wholesale markets. Consumers increased their consumption while their supply dropped. According to the sales they experienced and not to the changes in demand due to a lower supply and the low price at the retail. The net income for the first quarter compared to the past twelve months were 1,637,829. These figures do not include the $3.4B lost to the consumer and $3.2B for the third quarter. Overall the loss would make up the cost of operating the organization. The expenses include any interest due on the cash and earnings and other expenses like administration costs, operating costs of the organization, overhead costs and salaries of the employees.  [pic 3]Operating costs

[pc:1421.11] The third quarter of the year had a positive outlook for results for the sales and services sector. The fourth quarter saw better results due to improved revenues and profit margins. The company also saw growth in the value of its equipment at 4% and in revenue and profit. Total revenue of $2.6B was well above the first quarter of 2015 which was $3.5B. Thereafter, the revenue increased by $1.8B. The net profit of the quarter also improved in the following 3 quarters : 1) revenues ( $ 1,914 ) $ 4,631 2) profits ( $ 1,925 , 551 ) 7,437 3) expenses ( $ 2,937 ) $ 32,936 5) stock (commercially traded) ( $ 27,829 ) $ 33,546 6) equity (commercially traded) ( $ 44,632 ) $ 57,853 7) operating income $ 1,914 $ 1,978 $ 2,938 6) Net profit 1.06 $ 1.06 $ 1,962 13) Operating margin 10.4% 15.9% 16.93% 16.3% 17.3% 18.4% 19.1% 20.0% 27.7% 35.0% 36.2

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Cash Movements And Financial Analysisintroductionanthony’S Orchard. (August 7, 2021). Retrieved from https://www.freeessays.education/cash-movements-and-financial-analysisintroductionanthonys-orchard-essay/