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

For-profit organization - Research Paper ExampleIt is illustrative to examine the difficulties behind adopting this particular accounting procedure. The Volvo Group has a physical body 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 stratum across completely departments During the fourth quarter of 2010, the Volvo Group continued to grow at a good pace with higher sales in all regions, improved profitability and a very strong cash give ear. Year-on-year sales were up 23% to SEK 73.4 billion. Operating income improved to SEK 5.5 billion and the operating cash flow from Industrial operations amounted to SEK 15.1 billion. As a result of improved profitability and strong cash flow, net debt in the Industri al operations is now tear to 37% of shareholders equity, which is in accordance with our objective.