HND accounting GU2 报告.docx

BriefSMART objectives of projectMotorola was founded in 1928; it is one of the worlds wealth hundred businesses. The business scope of this company covers the broadband communications, embedded systems and wireless networks.In this report I will use Motorola’s annual report during 2004 to 2008 which I found in Motorola’s website and try to raise the veil of its financial situation by analyze Motorola’s cash flow position and profitability ratios. I hope this will help the shareholders of Motorola to have a clear see of this company’s advantages, disadvantages and the risk in the future then do the best invest. The main objective of the project should be achieved within 17 weeks in 30, December.Statement of the issue to be investigatedA company’s cash flow performance will show the development trend of the company and the company’s future, profitability ratios will reveal the company’s ability of making profit, it relate to shareholders’ return of investment. Both of cash flow position and profitability ability are the most be concerned by people. In this report I will analyze Motorola’s cash flow and profitability ratios to help the shareholders make investment decision by be awarded with its advantages, disadvantages and risks.Reasons of the choice of the issueThe reasons of me to choose this issue will be show as follow: As we all know an economic crisis outreached in 2008 and it still will continue for a period of time. In this situation it is harder for shareholders who have poor knowledge of finance to have a clear view of the company and invest correctly; therefore I will help them to see clearly of the situation.Maximum profitable is every profitability company’s goal so it has the necessary to analyze company’s profitability.Cash is the most liquid assets of all business, without sufficient cash flow a business will be unable to pay current liabilities or unable to fund investment in new fixed assets, eventually the business will grind to a half. To analyze