ADVANCE FINANCIAL MANAGEMENT

Advance Finance for Manager

Advance Finance for Manager

Overview of the topic

The topic is based on the case that requires an analysis based on the principles of Advanced Financial Management. The two independent family firms have made a decision to merge with each other. The two firms are Smiths Supermarkets and Jones Wholesalers. Smiths Supermarkets operates three large convenience stores in important locations. The company buys most of its products from Jones Wholesalers, a successful food packaging firm. The companies have conducted an analysis by merging with each other in order to gain potential benefit resulting from business transactions. The companies can certainly have a positive impact because of the merger transaction and scope for achieving higher profitability.

The merger between the retail distribution and the wholesale foods is a major aspect. The reason is that there is a strong interconnection between both firms. The merger of the two companies will help in saving costs and time as well. The Company's directors are also very much convinced with the idea of having a merger in order to facilitate the business transactions of the company in future. The financial assessment has also been prepared in this regard for having a proper mechanism for future business transactions. The mergers have many benefits for most of the organizations but they also need to conduct a detailed analysis of other factors as well. The Board of Directors running the company's operations also require a satisfactory financial analysis. This is the reason why the financial analysis would be conducted to convince the Senior Management for advancing towards merger. Therefore, all the issues and aspects related to Advanced Financial Management will be discussed in detail.

Importance of Financial Information

The usage of the professional financing planning tools can certainly help in improving the financial situation. The reason is that these tools provide a technique in meeting the financial needs. The first step is to identify the financial needs by either creating a budget or analyzing some of the financial expenses. In this way, the financial needs are identified which assists in going towards the next stage of the personal financing. In the second case, the options related to the personal financing tools are then prepared for meeting the expenses. The three areas which can be changed are the income needs, expenses needs and saving needs. The importance of the Life Financial Cycle is quite high in achieving the financial goals. The step of the financial cycle involves the different types of expenses met at a different point of time (Denis, 2004, 326).

The importance of Financial Statements is very high for most of the organizations. The preparation of consolidated financial statements is of practical interest of accountants and financial professionals in many cases the presence in the operating business of several companies, and sometimes several entities at the level of physical persons. Current standards of accounting and financial reporting often involve a wide departure from the principle of consolidation exclusively legal ...