nestle and unilever

1. GROUP ASSIGNMENT OF FINANCIAL ACCOUNTING”
GROUP MEMBERS:
Mehwish khan (078)
Minahil saleem (079)
Samina khan (082)
SUBMITTED To:
Mr. Rana Tanveer
CLASS:
BBA-2nd
“MINHAJ UNIVERSITY LAHORE”

2. 1) Financial Statements
a) Balance sheet and Income statement of the company
 Balance sheet 2018 and 2019

4.  Income statement 2018 and 2019

6. b)Cash flow statement

7. c)
d)
e)
f) Known items

8. knowns items give the list of those items you think you have studied and
you know them only from balance sheet
Following are the list
Typical line items included in the balance sheet (by general category)
are: Assets: Cash, marketable securities, prepaid expenses, accounts receivable,
inventory, and fixed assets. Liabilities: Accounts payable, accrued liabilities,
customer prepayments, taxes payable, short-term debt, and long-term debt
g)Unknown items:
Total Assets; Cash and equivalents, Accumulated depreciation, goodwill net, Total
liabilities; minority interest, capital lease obligations, Total equity; preffered stock,
redeemable stock, treasury stock, esop debt gurrantee, unrealized gain.
h)Definitions of Un-known items
Cash and equivalent:
These are investments securities that are meant for short-term investing; they
have high credit quality and are highly liquid.
Accumulated depreciation:
It is the cumulative depreciation of an asset up to a single point in its life.
It’s a contra asset account which means its natural balance is a credit that reduces
the overall asset value.

9. Goodwill net:
It is the cost to purchase the business minus the fair market value of tangible
assets, the intangible assets that can be identified, and the liabilities obtained in
purchase.
Minority interest:
It ia the portion of a subsidiary corporation’s stock that is not owed by the
parent corporation.
Capital lease obligations:
Obligations to pay rent or other payment amounts under a lease of real or
personal property of such person which is required to be classified or accounted as
a capital lease.
Preffered stock:
It is aform of stock which may have any combination of features not
possessed by common stock including properties of both an equity and a debt
instrument.
Redeemable Stock:
It is a type of preffered stock that allows the issuer to buy back the stock at a
certain price and retire it.
Treasury stock:
It is also known as treasury share or reacquired stock refers to previously
outstanding stock that is bought back from stockholders by the issued company.

10. Esop debt:
Debt of an ESOP should be recorded as a liability in the financial statements
of the employer when debt is covered by either a guarantee of the employer or
commitment by the employer to make the contributions to meet the debt service
requirements.
Unrealized gain:
It is a potential profit that exists on paper, resulting from an investments. It
is an increase in the value of an asset that has yet to be sold for cash, such as a
stock position. A gain becomes realized once the position is sold for a profit.
: Comparison of Performance of the
Companies for 2018 and 2019
a. Calculate % change of each item of Balance Sheet and
Income Statement of Both Companies
Total current asset
Cash and equvailent -36%
Cash 13%

11. Short term investments 37%
Total receiveable 4%
A/R 3%
Total inventory 2%
Prepaid expenses -6%
Other assets 66%
Total Assets
Plant equipment net -3%
Gross net -2%
Accumulated depreciation -76%
Goodwill net 88%
Intangible -4%
Long term investments 5%
Notes receivable 5%
Long term assets 13.9%
Total current liabilities
A/P 7%
Payable/ accured 100%
Accured expense 6%

12. Notes payable 12%
Capital leases 8.6%
Other current liabilities 22%
Total Liabilities
Long-term debt -9.9%
Long term -10%
Capital lease obligation -7.6%
Defered income tax 1.9%
Minority interest -20%
Other liabilities 5%
Total Equity
Common stock -2.6%
Retained earnings -1.7%
Treasury stock 0%
Other equity -4.9%
Income Statements

13. Total Revenues
Revenues 1.2%
Cost of revenues 1.2%
Gross profit 1.2%
Total Operating Equipment
Selling equipment 0.6%
Research& development -0.8%
Unusual Expense 0.9%
Operating expense 0.6%
Operating income
Interest income 0.4%
Other net 0.1%
Provisions for income tax 8.1%
Net income after tax
Minority interest 0.1%
Equity in affialetes 9.2%
Net income 24%
Income available to common excluding extraordinary items
Dilution adjustment 100%

14. Dilution net income 24%
Dilution weighted average 2.8%
Dilution EPS excluding extraordinary items
DPS 10%
Diluted normalized EPS 14%

15. Comparison Of Financial Information of 2018
and 2019
NESTLE
FinancialInformation2018 FinancialInformation2019
Current-Assets= 41003 Current-Assets=35663
Non-CurrentAssets= 96012 Non-CurrentAssets=92277
TotalAssets=137015 TotalAssets=127940
CurrentLiabilities=43030 CurrentLiabilities=41615
Non-currentliabilities= 35582 Non-currentLiabilities=33463
Totalliabilities=78612 TotalLiabilities=75078
AuthorizedCapital= 57363 AuthorizedCapital= 52035
Issued,subscribedandpaidupcapital=58403 Issued,subscribedandpaidupcapital=52862
Totalnumberofsharesoustanding=64590 Totalnumberofsharesoutstanding=60943
Totalrevenuesales= 91439 Totalrevenuesales=92568
Totalexpenses=77687 Totalexpenses=76490
Grossprofit=45369 Grossprofit=45921
Operatingprofit=13752 Operatingprofit=16078
Taxes= 3439 Taxes=3159
Netincome=9552 Netincome=11903

16. 1)Financial Statements

17. a) Balance sheet and income statement of
the company
 Balance sheet 2018

19.  Income statement 2018

20. b)Cash flowh statement

21.  Balance sheet 2019

22.  Income statement 2019

23. b)cash flow statement

25. c) Known items
knowns items give the list of those items you think you have studied and you
know them only from balance sheet Typical line items included in the balance
sheet (by general category) are: Assets: Cash, marketable securities, prepaid
expenses, accounts receivable, inventory, and fixed assets. Liabilities: Accounts
payable, accrued liabilities, customer prepayments, taxes payable, short-term debt,
and long-term debt
b)Unknown Items:
Taxation net, unclaimed dividend, provisions , accured interest,
Taxation net:
The net of tax is simply the amount left after taxes have been
substacted.
Unclaimed dividend:
It is recorded when a shareholder fails to claim an already paid dividend
while an unpaid dividend is the failure of a company to distribute dividends to
shareholders after it has been announced.
Provisions:
An amount set aside to cover a probable future expense, or reduction in the
value of an asset. It is recorded as a current liability in balance sheet.
Accured interest:
It refers to the amount of interest that has been incurred, as of a specific date,
on a loan or other financial obligation but has not yet been paid out.

26. Chapter 7:
Comparison of Performance of the Companies for
2018 and 2019
a. Calculate % change of each item of Balance Sheet
and Income Statement of Both Companies
b.Balance statement
Non-current asset
Property equipment 39.6%
Inventory 0%
Long term deposit & prepayment 1%
Long term deposit & advances 14%
Current asset
Stores and spares 38%
Stock investments 4.4%
Trade debts 16%
Loans & advances 7.5%

27. Trade deposits & short term prepayments 56%
Other recieveable 1.4%
Sales tax refundable 0%
Taxation net 4.5%
Cash and bank balance 22%
Share capital expense
Share capital 3.4%
Reserves 14.3%
Liabilities
Non-current liabilities
Staff requirements 49%
Deffered taxation 30.5%
Current liabilities
Trade and other payables 2.2%
Unpaid dividend 87.6%
Unclaimed dividend 85%
Provisions 11.7%
Accured interest 48%
Sales tax payment 0.1%

28. Short term borrowings 60.8%
Income statements
Sales 10.7%
Cost of sales 10%
Gross profit 10.8%
Distribution cost 91.7%
Administration expense 4.1%
Other operating expense 3.2%
Other income 68.7%
Finance costs 167%
Profit before taxation 29%
Taxation 34%
Profit after taxation 27.7%

29. UNILEVER
UNILEVER
FinancialInformation2018 FinancialInformation2019
Current-Assets= 3056526 Current-Assets= 4437669
Non-CurrentAssets= 2914357 Non-CurrentAssets=3630138
TotalAssets=5970883 TotalAssets= 8067807
CurrentLiabilities=3903785 CurrentLiabilities=5806790
Non-currentliabilities= 1180409 Non-currentLiabilities=272160
Totalliabilities=5970883 TotalLiabilities=8067807
AuthorizedCapital= 63699 AuthorizedCapital= 63699
Issued,subscribedandpaidupcapital=1886689 Issued,subscribedandpaidupcapital=1988857
Totalnumberofsharesoutstanding=1822990 Totalnumberofsharesoutstanding=1886689
Totalrevenuesales= 4801476 Totalrevenuesales=5680852
Totalexpenses=1835723 Totalexpenses=1981083
Grossprofit=4136575 Grossprofit=3874445
Operatingprofit=1786414 Operatingprofit=1827318
Taxes= 588212 Taxes=166890
Netincome=1235396 Netincome=1548138

30. Comparison of NESTLE and UNILEVER
Nestle vs Unilever
Nestle corporation and Unilever are multinational companies that were establishes
in 1866 and 1930. The longevity and continues success of these two companies has
been seen over the years with their expanding customer base on a global scale.
Continued rebranding, improvement and advertisement of their products have
made them a household name in almost every country in the world. Indiscriminate
investment including their operation in both socialist and communist countries
including Russia has been instrumental to their expanding networks across the
globe. Nestle has staff of about 283,000 individuals whilst Unilever has 163,000
employees as of 2010.Nestle corporation is a company that specializes in foods and
nutrition products. The company has diversified in the food processing industry by
producing a cornucopia of products. Their products include baby food, bottled
water, dairy products, ice cream, confectionery, breakfast cereals, coffee and pet
foods.
Nestle is however a 26.4 % stakeholder in the world largest producer of beauty and
cosmetic products known as L’Oreal. Nestle is involved in joint ventures with
other companies in Cereals with General Mills, beverages with Coca-cola, , dairy
products with Fonterra dermatology with Galderma and finally Laboratories with
L’Oreal. It is therefore indirectly involved in the production of non food
products.(Nestle, 2010). On the Converse, Unilever is a more diversified
corporation that has an array of consumer products. The company produces more
than food products and beverages hence its products include cleaning agents, as
well as products for personal care purposes. These products include nail polish,

31. shampoos, deodorants, petroleum jelly (Vaseline), edible oils and fats, soaps, tea,
skin and hair care products and other cosmetics. Unilever is directly involved in
the production of both food and non-food products from the raw materials as with
some products, and through all the stages of the production line(Unilever,
2010).Unilever Corporation is a multinational company that boasts of factories as
well as laboratories on all the continents apart from Antarctica The company
posted a net income of ˆ3,659 million and an operating income of ˆ5,020 million in
the year 2009(Unilever, 2009). On the other hand, the Nestle Corporation draws its
customer base from 86 countries. The company register a net income of CHF 10.43
billion (Swiss Francs) and an operating income of 15.70 billion in 2009 (Nestle,
2009).
Both Unilever and Nestle use a the strategy of buying already established and
household brands. They then expand these brand and market them more

32. aggressively in their companies. This can be exemplified by the ice-cream market
share that the two compete for at a global scale. Unilever bought both Ben &
Jerry’s and Breyers Ice Cream to extend its tentacles.
Nestle responded by buying both Movenpick and Haagen-Dazs, Dreyer’s. In the
end, these brands made the two companies the largest ice-cream sellers in the
world with Unilever boasting of 16% a close second to Nestle which has 17.5 % of
the global market share. They therefore have a lot of semblance in the marketing
strategy. They employ avoid introducing a totally new product under a different
company’s name.
In lieu of that, the two companies introduce these products/ flavors through
the established companies which the populace is familiar with these are the
companies they have bought (Career Journal,2007). Both companies are aware of
the global rise of economies and increase awareness of healthy food consumption.
It is in this light that the two companies have shifted their axis of their paradigms
into a marketing strategy that targets this growing class of people in north America
and Western Europe. They have therefore given precedence to products with low
fat and calorie levels to entice this market. This is how these two companies
compete as they roll out nouveau product with descriptions fitting what the health
conscious and fairly opulent consumer wants (Benady, 2005).
A financial projection of the purchasing power in Asia predicts and two fold
increase in the purchasing power of the opulent populace in five years time. The
two companies have a lot of prospects in Asia especially in the ice cream business.
The only impediment they are faced with is that the market penetration is at
minimal in these countries where owning a domestic freezer is a luxury. .The
marketing strategy they employ in the case of ice cream sale is employing street
vendors who would dispense the ice cream in serving that do not require

33. refrigeration due to their small sizes. The market aggressiveness of both Unilever
and Nestle is almost uniform given the current trends in ice cream sales in the
Asian countries (Career Journal, 2007).
However, Nestle has demonstrated slightly more aggressiveness and innovative
characteristics when it comes to venturing into the Asian market than Unilever.
Neslte does this by holistically bestowing certain responsibilities to its subsidiaries.
This facilitates the seamless blending of its products in such a market by being in
tandem with the taste profile in the that foreign market. The company has business
units numbering to severe. These are charged with the responsibility of laying out
global marketing strategies as well as research and development , systems control
and production expertise. This perspective is instrumental in fashioning a regional
strategy that automatically avails a business strategy that will serve the local
market.
The business aspect is therefore intricately interwoven with the marketing facet of
the corporation(The times 100, 2010).As mentioned above, the two companies
have unequivocally prodigious budgets which are generously allotted for
marketing that has a synergistic effect with their well ramified and extensive
marketing networks. These factors are instrumental to the acquisitions that they are
planning to make in Asia which is the next new hot spot for marketing their
products. It is imperative to note that the market penetration strategy of both
Unilever and Nestle begins with acquisition of local companies in their target
region. his definitely comes after identification of the next product that would yield
growth for the company. In this case, nutritional products- foods that have medical
benefits are the focus of the two companies.

34. Conclusion:
Both of companies are growth due to their increasing time and profits increase as
their decrement of loss. Both companies have international standard company so
their shareholders increase day by day. Annual repot define the company financial
position so that’s both companies financially strong day by day.