Acc205 Final Essay

1515 WordsJun 8, 20147 Pages
Running Head: FINANCIAL 1 Financial Analysis Mariah Gray ACC205 Keith Graham 05/05/2014 FINANCIAL 2 When operating a business there are many things that you have to take into consideration. Sales and profit is a major factor in decision making. Another thing to consider is product or services. When you are selling these things, you have to decide what kind of customer you want in your business. Whether it can be something you pay up front, or something customers can pay monthly as they go. Duke energy is an electric and gas company that offers budget options, monthly bills, and outstanding balances. Some major issues with this kind of service to consider is debt, and if your customers will pay you on time or owe you and it considered as debt on both ends. Duke energy has many investors; it is because it is such a major company that is expanding excessively. In order to consider investors, there are certain steps that Duke Energy needs to take for the investors to evaluate the company and take into consideration. The horizontal analysis is used to study the behavior of individual financial statement items over several accounting periods. This helps investors learn and understand the financial health of the company. The ratio analysis is used to help understand and ready a business to meet maturing financial obligations. If they want to make an investor recommendation they need to use ratio analysis to prove that they are financial stable for someone to invest into their company. There is much strength in investing in Duke Energy, it is a popular company that is used by many, it is something that people need to have to live. But on the other hand the weakness is that some people cannot afford to pay their bill and will end up in debt because they owe the company money, which in return will

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