Research Paper on Accounting Case Study Example | Topics and Well Written Essays - 2500 words

Research Paper on Accounting - Case Study Example Presently, the company is contributing $20 million of energy to US department (Solar Technology, n.d.). BP is also focussing on the wind energy sector since the launch of Alternative Energy business in 2005. The company is estimating a production of around 1000 MW (Wind Technology, n.d.). BP has also taken initiatives to control the global warming problem. The company has already deployed CCS technologies in many of its plants. In CCS technology, CO2 is stored underground, instead of blowing into the atmosphere. BP is planning to store 17 million tonnes of CO2 under CCS (Carbon Capture and Storage Technology, n.d.). BP sells its products under six different brands. The major brand is known as BP itself. It is into oil exploration, refining, solar projects, wind projects and shipping various products of the company overseas. Aral is another brand of BP, which is a famous brand in Germany and provides quality automotive fuels. The other brands under BP are Arco, Castrol, Ampm and Wild Bean Cafe. While, Arco is the provider of clean and low cost fuels in US, Castrol is the worldwide leading engine oil. Ampm is the convenience shop brand in Western USA and Wild Bean Cafe provides world class coffee and affordable food. BP's main objective is to produce affordable, safe and secure energy and the creation of shareholders value. Creating a highly diverse energy portfolio with utmost efficiency is the ultimate goal of the company. Along with this, BP also intends to produce sufficient fossil fuel resources. BP wants to be a major contributor to the process of pollution control for a low-carbon future. Efficient manufacturing, processing and delivering of better products are other major objectives of British Petroleum (Our Strategy, n.d.). Layout (structure) The organisation structure of British Petroleum consists of- Chairman The Board Executive directors Non-Executive directors Board Committees Chairman's Committee Nomination Committee Audit Committee Ethics & Environment Assurance Committee Remuneration Committee Methodology (methods used) Ratio analysis has been used to comment on the financial condition of BP. Ratio Analysis Net Profit Margin = Net Income/Revenue Return on Capital Employed = Gross Profit Margin = Current Ratio = Current asset/ current liability Acid Test Ratio = Stock Turnover Period = Cost of goods sold / average stock Debtors Collection Period = (average debtor / credit sales) 365 Note: Since credit sales are not mentioned, the net sales of the company has been considered as credit sales. Creditors Collection Period = (credit purchase/ average creditor) 365 Note: Since credit purchase is not mentioned, so the entire purchase (Annual Report 2008, pg 141) is considered to be the credit purchase. Gearing Ratio Debt-Equity ratio = Total Debt / Total equity Times interest earned = EBIT/ Total Interest Equity ratio = Tot