Document Preview:
Elite Services Company Analysis Students Name Institutional Affiliation Company Success To establish whether the company’s first month was a success there are various indicators in a financial statement that are resourceful in such analysis. Indicators including the sales revenue expenditure of the merchandise operation expenses and the net income will be the key indicators in establishing how profitable a company is. Analysis of an income statement should be able to explain what comes into the company what went out as liabilities and how much has been retained by the company. The sales revenue drive majorly determines a company's success. Effective sales and marketing strategies are very critical to the success of the company. Sales revenue then is determined by selling of products services provided or through sales of financial company products or any all of the methods. A sustainable long-term sales revenue strategy is key in establishing fluidity of the financial month was an indicator as to why the company decided to share dividends. An important factor in distributing dividends is in the taxation policies. In some instances dividend distribution is taxable to a certain extent and thereby some companies will distribute dividends to share the tax burden to the shareholders who will be obligated to pay income tax on the dividends received. Elite Service Company may also distribute dividend as a means of retaining and even attracting more shareholders which in essence increases its capital revenue base. Elite Service Company seems like a closely held company which makes it easy for distributing dividend payouts as it may have a small number of shareholders. In some instances like elite services company a dividend distribution is critical for investors to buy more company stock as it is attractive and a sign of good management with positive future earnings goals. [...]
Order Description:
Using the questions below, in a total of 1,050 words: •Briefly address whether the company's first month of operations was a success. •Discuss the company's decision to distribute a dividend. I have attached the completed spreadsheet
Subject Area: Accounting
Document Type: Reports
