Objectives o Financial Communications

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The primary objective of financial communications of any individual firm is to survive. Financial communications would not be viable unless there remains a company to begin with; in order to do this a firm must create profit. Aside from profit, there are many other objectives of financial communications; the long term objective of securing wealth is coupled with satisfaction of financial requirements, such as the paying suppliers, clearing debts and paying appropriate dividends to shareholders. As well as managing and maintaining good finance managements in order to generate confidence within the business. McCarty’s turnover in the 2013/14 annual report is listed as £17,680,000,000 (McCarty’s, 2014). The company illustrates competent market knowledge in order to acquire such high turnover, although the figure is actually down on the 2012/13 annual report where turnover was £18,166,000,000. The fall in turnover represents a loss in market share for McCarty’s, as well as a fall in gross profit compared to 2013/14. Financial communications involves financial reporting, McCarty’s engages in financial reporting which involves communication, several individuals and firms alike hold an interest in how McCarty’s performs as a company, these individuals or firms can be called stakeholders. Stakeholders can learn about a company’s performance, in this case, McCarty’s, by reviewing the yearly published financial statements. Stakeholders can use the income statement to find out the company’s profitability, the balance sheet communicates the company’s ability to obtain and invest its resources. The statement of cash flows communicates McCarty’s ability to manage its cash, whereas; financial results are communicated through published financi... ... middle of paper ... ...0ANNOUNCEMENTPubished%20online%20140314.pdf (Last accessed 07/04/2014) Online.wsj.com. (2014) Stock Charting - WSJ.com - for Wm. Morrison Supermarkets PLC. [online] Available at: http://online.wsj.com/quotes/stock_charting.html?symbol=MRW&type=lse&osymb=GB-lLMRW&x=0&y=0&time=100&startdate=2%2F3%2F2013&freq=1dy&enddate=2%2F4%2F2014&wtype=64&compidx=&comp=&ma=1&maval=200&uf=0&sid=121970&symb=GB-lLMRW&lf=1&lf2=0&lf3=0 [Accessed: 7 Apr 2014]. Powell, R (2008). AS Economics. Oxfordshire: Philip Allan Updates. 190. Redmayne. (2014) Morrisons financials. [online] Redmayne Bentley Stockbrokers, Leeds. Available from: http://www.redmayne.co.uk//research/securitydetails/financials.htm?tkr=MRW (Last accessed 07/04/2014 Tutor2u. (2012) Main ratio analysis. [online] Tutor2u. Available from: http://www.tutor2u.net/business/accounts/main_ratios.htm (Last accessed 07/04/2014)

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