The Blazer Corporation

1 The Blazer Corporation The balance sheet and income statement of the Blazer Corporation reveals its financial position in 2017 and 2018. I am pleased that in both years, the company’s assets exceeded its liabilities. The company’s financial position is further solidified by its high retained earnings.

The retained earnings increased from 4,678 in 2017 to 5,678 in 2018. Increasing retained earnings indicate that the company is consistently profitable. The company’s long term assets, that is the property, plant and equipment, increased in 2018. This indicates that it is utilizing its excess cash flow effectively (Franklin, Graybeal, & Cooper, 2019).

I am also pleased that Blazer Corporation’s current and long-term liabilities decreased significantly in 2018, this shows that it is in good financial standing and will be able to pay its liabilities as they fall due in the future. However, I am concerned that the value of its assets dropped between 2017 and 2018.

Buy this excellently written paper or order a fresh one from ace-myhomework.com

2 The company should ensure that it maintains the right mix of current and long-term assets in order to remain sufficiently liquid (Scott, 2018). It is also a point of concern that the net profit dropped marginally in 2018 due to an increase in expenses. Blazer’s selling, general and administration expenses are excessively high and this is eating into the company’s profits. It is crucial for the financial wellbeing of the company to eliminate or reduce any unnecessary expenditure. Finding more alternative sources of income would also be of significant benefit to Blazer Corporation. The net profit margin is low considering its high sales; which is an indicator that the expenses occurring in between are too high.

3 References Franklin, M., Graybeal, P., & Cooper, D. (2019). Principles of Accounting Volume 1 - Financial Accounting. 12th Media Services Scott, P. (2018). Introduction to Accounting . Oxford University Press

.