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Where Tesco has still managed to be on the leading side in the concerned industry but due to certain wrong strategies and techniques, it showed a decline in its revenue and profits in the year 2015.As recommendation, Morrison needs to improve its working position by focusing on its marketing plans and thereby increase its turnover and profits.The declining graph of the profits of the organization shows the inability of the organization to increase its sales and usage of wrong marketing techniques and methods (Ahrendsen & Katchova, 2012).
Accrual of Telephone expenses of £ 2100 belonged to this year but was included in the current year therefore this has been added in the income statement of the current year.
3) Provision of taxation which belonged to this year of £ 12000 were not included, therefore this was also provided in the current year and less from the current year’s profit.
In the next part, we will be analysing the Annual Report of the two big giants in the Grocery industry i.e. These are the two leading multinational groceries of the world.
The thorough analysis of the Annual report along with the ratio analysis of the same will help in in-depth understanding of the actual working and finance performance of the Organizations.
The turnover of the Morrison in the year has been £ 18116 which show a decline in the year 2014 £ 17680, this meagre decline in the turnover shows the intense competition in the groceries industry.
The Profits figures of the organization through all the three years i.e. In the year 2013 it was about £ 1206 where in the year it declined and was £ 1074 and it further declined in the year 2015 and was £761.It includes only those items which pertain to that year and the items which either is of the last year or for the next year are excluded from this statement.In the following Income Statement, following adjustments were made 1) Cost of sales was calculated by using the following formula, Opening stock Purchases- Closing stock= Cost of Sales And further was included in the income statement.(£5766), which shows unsuccessful expansion or any wrong strategy (Ahrendsen & Katchova, 2012).It shows that with the consistent performance in the years 20, it than entered in to other expansion plans which ultimately lead to decrease in the performance of Tesco.4) Depreciation on the Motor vehicles and on Equipment was not provided, therefore provisions have been provided for both the Assets on the rates as provided in the Adjustments entries.5) Closing stock was mentioned in the last that was also adjusted, in the Income statement.2013, 2014, 2015, its been evident Revenues has increased with the year 2014(£ 63557) with a certain margin, than it decreased in 2015(£ 62,284) again with certain margin.The Profits of the organization has also seen some great ups and downs in the year 2013 is £120 in the year 2014 it increased to £970 but in the year 2015 it incurred huge losses i.e.2) All the operating expenses were added up than among which the following adjustment were done (Weetman, 2013) £ 8000 from rent was less because this £ 8000 pertains to the next year and was included in the trial balance.£ 1000 from Heat & Lighting was excluded as these also belong to the next year and was already included in the Heat & Lighting.