For-profit organization Research Paper Example | Topics and Well Written Essays - 500 words

For-profit organization - Research opus ExampleIt is illustrative to examine the difficulties behind adopting this particular accounting procedure. The Volvo Group has a number of divisions Volvo Trucks, Volvo Buses, Volvo Construction, Volvo Penta, Volvo Aero and Volvo financial Services. Volvo is primarily a vehicle and automobile manufacturer, but its finance website offers leases and finance solutions, meaning that accounting is doubly important for the firm (Volvo AB, 2011). Volvo had an excellent year across all departments During the fourth quarter of 2010, the Volvo Group act to grow at a good pace with higher sales in all regions, better profitability and a very strong cash flow. Year-on-year sales were up 23% to SEK 73.4 billion. Operating income ameliorate to SEK 5.5 billion and the operating cash flow from Industrial operations amounted to SEK 15.1 billion. As a result of modify profitability and strong cash flow, net debt in the Industrial operations is now down to 37% of shareholders equity, which is in accordance with our objective.