SOLUTION: ACCT 201 SEU Saudi Arabian Oil Co 2019 Statement of Financial Position Discussion

hello buddy,, here is the final answer. thank youRUNNING HEAD: FINANCIAL ACCOUNTING1Financial AccountingStudent’s NameUniversity AffiliationAssignment Question(s):(Marks. 5)FINANCIAL ACCOUNTING2Q1. Choose a Saudi corporation and find its statement of financial position for 2019 and therelated notes. Discuss and analyze the statement in light of things you studied in chapter 5.Answer should be no less than 300 words. (2 marks)Answer:The Saudi company in consideration is the Saudi Arabian Oil Company. We will consider thestatement of financial position as at December 31, 2019 together with related notes to analyze itsfinancial performance and cash flows in that year. This will aid in knowing how efficiently thecompany is being financed as well as the using of its resources.From the statement it is evident that the non-current asset with the highest value wasproperty, plant and equipment followed by intangible assets and other assets and receivables. Thisindicates that the company has invested more on the plant and equipment for efficiency of itsproduction since it’s a manufacturing company. When the production efficiency is high itautomatically translates to more profits to the company.On the current assets, cash and cash equivalents took the highest value followed by tradereceivables and short-term investments. This insinuates that the investment in non-current asset isbeing productive and producing more returns. However, if the inventory is piling up as the noncurrents are just idle, then no returns are been generated in terms of sales.However, the non-current assets were more compared to the current asset. This isrecommendable because the company holds manufacturing business and will therefore need manymachines and equipment to produce its goods. It will therefore need to invest more on the noncurrent assets as compared to current assets.In terms of the non-current liabilities, borrowings took the largest value followed by deferredincome tax liabilities, post-employment benefit obligations and provisions. This implies that one ofthe main sources of funding for the company is through borrowings and by calculating the workingcapital we realize on how the company meets its obligations. Long time investors will consider thenon-current liabilities to determine how a company is utilizing excessive leverage. By this financialstatement, the investors could be convinced that company is stable and can be at less risks even withmuch borrowing.In view of current liabilities, the obligations to the government such as income tax, dividendpayable, and royalties took the large percentage whil…

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