(1) Step 1: read the financial statements and main financial indicators of the enterprise in the past three years, and read the financial indicators of the leaders or competitors in the same industry at the same time;
(2) Step 2: Review and understand the important events and important decisions or actions taken by the enterprise in the past year;
(3) Step 3: Summarize and judge the financial status, main features and abnormal phenomena of the enterprise this year.
2. The second stage-technical analysis stage (4) Step 4: Calculate the relevant financial ratios by using the financial index system of the system, including: (a) profitability; (b) Efficiency in the use of assets; Liquidity; Debt capacity; Cash flow status; Market performance and shareholder returns; Value creation;
(5) Step 5: Conduct a "three-dimensional analysis" of the financial index system: (a) Historical comparative analysis; (b) Comparative analysis of industries; (3) Comparative analysis of composition.
(6) Step 6: Describe the financial situation of the enterprise comprehensively and systematically, portray its financial characteristics, and reveal its existing or potential problems;
(7) Step 7: Analyze profitability, self-sustainable growth ability, risk sensitivity, operating leverage, financial leverage and value creation;
3. The third stage-financial decision-making stage
(8) Step 8: Analyze the financial situation of the enterprise and the influencing factors of its characteristics;
(9) Step 9: Review and consider the current financial policies and business policies of the enterprise, and put forward the following suggestions.
Schemes that can be improved or modified;
(10) Step 10: Study the feasibility and implementation possibility of new financial policies and business policies.
Effect, formulate relevant implementation plan.
Question 2: How to do financial analysis Financial analysis is to try to understand the true face of enterprise's operating performance and financial situation, and to dig out the economic meaning behind accounting data from obscure accounting procedures, so as to provide decision-making basis for investors and creditors. Because the accounting system only selectively reflects economic activities, its confirmation of an economic activity will lag behind for a period of time, coupled with the imperfection of accounting standards and the freedom of managers to choose accounting methods, there will inevitably be many inappropriate places in financial reports. Although auditing can improve this situation to some extent, auditors cannot absolutely guarantee the authenticity and appropriateness of financial statements. Their job is only to provide a reasonable basis for report users to make correct decisions. Therefore, even the financial statements that have been audited and obtained unqualified audit reports cannot completely avoid this inappropriateness. This makes financial analysis particularly important.
First, the main methods of financial analysis
Generally speaking, there are four main methods of financial analysis:
1. Comparative analysis: it explains the quantitative relationship and quantitative differences between financial information, and points out the direction for further analysis. This comparison can be compared with the actual plan, the current period and the previous period, and also with other enterprises in the same industry;
2. Trend analysis: it reveals the changes in financial status and operating results, their causes and nature, which is helpful to predict the future. The data used for trend analysis can be absolute value, ratio or percentage data;
3. Factor analysis: in order to analyze the influence of several related factors on a financial index, the method of difference analysis is generally adopted;
4. Ratio analysis: Through the analysis of financial ratio, we can know the financial status and operating results of enterprises, often with the help of comparative analysis and trend analysis.
The above methods overlap to some extent. In practical work, the ratio analysis method is the most widely used.
Question 3: How to do a good job in financial analysis? Nowadays, accounting is no longer a simple accounting role of accounting, bookkeeping and account management. More and more people participate in the operation and management of enterprises, and play a very important role in the whole business activities of enterprises. Whether the compilation, summary and reflection of financial data are accurate, whether financial analysis is appropriate and whether financial management is in place plays a considerable role in the management of enterprises in many cases.
How to do financial work well
. So how to do financial work well, I think we should start from the following aspects: 1, a sound financial system. Financial system is the basis for enterprise financial personnel to carry out financial activities in enterprise production and operation activities. A sound financial system is a powerful guarantee for the healthy development of enterprises. In their daily work, financial personnel must strictly implement the financial system formulated by the enterprise and act fairly, justly and openly in accordance with the relevant provisions of the financial system. 2. Collect, collate and summarize basic financial data. Whether the financial data is accurate or not not not not only reflects the working level of a financial personnel, but also determines the accuracy of the financial achievements of an enterprise, which is related to the correctness of the decision-making of enterprise managers and also affects the decision-making of enterprise decision-makers. Therefore, as financial personnel, we must do a good job in collecting, sorting out and summarizing the basic financial data, truthfully reflect the financial achievements, objectively analyze the problems existing in business activities, and put forward solutions for the reference of enterprise decision makers. 3. Do a good job in pre-budget, in-process control and post-event analysis. Modern enterprises pay more and more attention to the overall budget of enterprises, especially the decision makers of group companies, who can only control the production and business activities of the whole group company from a macro perspective and consider the development direction and business strategy of the whole group company from a global perspective. It is impossible to carefully consider the expenses, personnel arrangement, asset purchase and other details of each subsidiary, so the financial budget is very important at this time. Doing a good job in financial budget is the data basis for process control and post-analysis Financial budget should not be seriously divorced from reality. According to the development needs, development direction and development strategy of enterprises, various financial budget indicators need to be worked out objectively, that is to say, they must be operable to achieve the purpose of macro-control and achieve the management goals expected by enterprise managers. The financial budget should include the overall goal of income realization, cost control, various taxes and fees payment and operating results. After the preparation of the financial budget, the next step is the implementation of the financial budget, that is, the control in the process. Process control is the application of financial budget in practical work. All economic indicators and economic activities must be carried out around the financial budget formulated in advance. Financial personnel must conscientiously implement the financial budget and control all expenses in strict accordance with the financial budget. For extra-budgetary funds and expenses, they must be submitted for approval according to the relevant provisions of the budget system before they can be paid. For over-budget projects, we must objectively analyze and truthfully reflect the situation, and then pay after going through the examination and approval procedures according to regulations. Post-event analysis is an evaluation made after comparing process control with pre-event budget. After the analysis, we should objectively and truly analyze the difference between the actual situation and the budget, truthfully reflect various situations, analyze various reasons, find out problems, fairly evaluate the operating results of the enterprise, put forward correct solutions and methods, and make suggestions for the growth of the enterprise. 4. Financial personnel should pay attention to professional ethics and self-cultivation. Among all the personnel in an enterprise, the financial personnel are the ones who deal with money most often, so the financial personnel must be firm in their will and always pure in their hearts, without any selfish distractions. Financial data is also a part of trade secrets. As a financial officer, you can't disclose the financial data you have and are familiar with at will, and you must keep your mouth shut. Financial data are collected from all departments of the enterprise, so the relationship between financial personnel should be not only harmonious, but also good relations with all departments, so as to obtain the most authentic, basic and authentic financial data. Financial personnel must not have lofty views, in this case, you are a failed financial personnel!
Question 4: How to do financial analysis 1, development trend analysis
Development trend analysis is to understand the trend of enterprise financial status over time by comparing the financial operation data or financial ratio of enterprises in several consecutive periods. On the one hand, it is to see whether the data has changed abnormally, so as to find out the existing problems. On the other hand, it is used to predict the future financial situation of enterprises and judge their development prospects.
2. Comparative analysis
Comparative analysis is one of the basic methods of financial analysis. By comparing a certain financial index with the evaluation standard of the same nature, the financial status, operating status and cash flow of the enterprise are revealed. To compare, there must be standards, and with standards, there must be reference objects, so as to find the quality of financial indicators.
There are four reference standards for comparative analysis:
Period comparison: compare with the actual data of the previous period and the same period last year.
Entity comparison: compared with the advanced enterprises in the same industry or the industry average.
Diameter comparison: Compare with planned or budget data.
Structure comparison: compare the composition of the two periods on the basis of composition analysis to see the changes of financial indicators.
Column charts and bar charts are usually used to compare the size and composition of data, while cumulative column charts and bar charts are used to compare structures. Of course, other charts can be used according to the specific situation of analysis, such as comparing the highest and lowest inventory of several companies with the existing inventory through line charts, and radar charts can also be used to compare multiple financial indicators of several companies.
4. Analysis of achievements and progress
In financial analysis, it is often necessary to show the progress of an indicator, such as the completion of performance and the progress of expenses. In order to show the progress more intuitively, we usually use column charts and stacked bar charts to show it. You can also use a double-layer doughnut chart to indicate progress.
5. Analysis of influencing factors
In financial analysis, the analysis of influencing factors has two different meanings:
First, it refers to factor analysis, such as the price difference that affects sales revenue;
Second, it refers to various cumulative effects from one indicator to another, such as analyzing the influence of various factors of EBIT indicators from budget to actual value.
Question 5: How to do financial analysis? Analysis of several aspects. (1) Read the financial statements carefully. As mentioned above, the purpose of investors' financial analysis is to evaluate the advantages and disadvantages of listed companies, understand their business trends, and evaluate their profitability, operational ability and solvency, so as to determine the investment value of the company's stocks. This is the basis for investors to make rational investment, and it is also the premise for investors to obtain stable investment income. Therefore, with rational investment gradually becoming the mainstream of the market, more and more investors begin to pay attention to the financial statements of listed companies and devote themselves to the financial analysis of listed companies. However, the figures in the company's financial statements are dense, some are complex, some are abstract and professional. For the majority of non-professional small and medium-sized investors, it is not an easy task to fully understand such figures and conduct financial analysis accordingly, but it is something we have to do. What should we do? Our suggestion is to grasp the key points and grasp the law. As an ordinary investor, reading and analyzing financial statements is mainly to understand the following questions: What are the financial performance and profitability of enterprises? What is the financial status and solvency of the enterprise? Is the enterprise's operating condition normal and its operating ability strong or weak? Changes in shareholders' rights and interests and whether shareholders' rights and interests are hurt? The reading analysis process can be divided into the following three steps: the first step: general reading, that is, rough reading. Because financial statements have a strong background of financial professional knowledge, investors who don't know much about financial knowledge often don't know how to start after getting a pile of financial statements; In addition, when centralized disclosure of annual reports, it is often necessary to publish several or even dozens of annual reports a day. If you read them carefully, neither time nor energy are allowed. At this point, it is necessary to skim it first. It is worth noting that some investors don't just look at one or two simple indicators such as earnings per share. On February 5th, 2002, China Securities Regulatory Commission issued "Standards for Contents and Formats of Annual Reports of Securities Companies (Revised)", in which the second item is "Summary of Accounting Data and Business Data", which is also the object of our rough reading. In the abstract, there are two items. The first item is "the total profit this year and its composition", which is mainly to let investors know the profit composition of a listed company this year. Generally speaking, we need to pay attention to whether the main business profits of listed companies are dominant, how big their net cash flow is, and how big the gap is with the total profits. The second item in the abstract-"the main accounting data and financial indicators of the company in the first three years as of the end of the reporting period" is the focus of rough reading. In this small item, basically contains the main data we want to know. Including the initial number, final number and percentage increase or decrease of financial status indicators such as asset-liability ratio, net asset-liability ratio, net capital ratio, current ratio, net capital, self-operated securities ratio, long-term investment ratio, fixed capital ratio, securities purchase and entrusted funds provided by listed companies in the form of data list; Including the previous year, this year's total profit, net profit, return on net assets, return on total assets, operating expense ratio and other business performance indicators and their percentage increase or decrease. Through these indicators, we can basically imagine the operating and financial situation of listed companies. For example, we can roughly estimate the profit rate of its operation from its main income and net profit. The most important and valuable thing is that we have the relevant data of the first three years at the same time, which is exactly what we want to analyze and discuss further.
Question 6: How to conduct financial analysis? How to make financial analysis of enterprises?
Financial analysis is an economic management activity based on accounting, statements and other relevant materials, and adopts a series of special analysis techniques and methods to analyze and evaluate the past and present situation of fund-raising activities, investment activities, business activities and distribution activities of economic organizations such as enterprises. Financial analysis needs to include the following contents:
1. capital operation analysis: according to the company's business strategy and financial system, predict and supervise the company's cash flow and the use of various funds, and provide information and decision support for the company's capital operation, scheduling and overall planning;
2. Financial policy analysis: according to various financial statements, analyze and predict the company's financial benefits and risks, and provide suggestions for the company's business development and the formulation and adjustment of financial management policies and systems;
3. Business management analysis: Participate in financial forecasting, budget execution analysis and performance analysis of sales and production, put forward professional analysis suggestions and provide professional financial support for business decision-making;
4. Investment and financing management analysis: Participate in financial calculation, cost analysis, sensitivity analysis and other activities of investment and financing projects, cooperate with superiors to formulate investment and financing plans, prevent risks and maximize the company's interests;
5. Financial analysis report: according to the financial management policy and business development needs, write financial analysis report, investment financial research report and feasibility study report to provide analytical support for the company's financial decision.
At present, most financial analysis methods are ratio analysis. The main advantage of financial ratio is that it can eliminate the influence of scale and compare the benefits and risks of different enterprises, thus helping investors and creditors make rational decisions. It can evaluate the annual change of the income of an investment, and can also compare different enterprises in an industry at a certain point in time. Because different decision makers have different information needs, they use different analytical techniques. Generally speaking, the relationship between risk and return is measured by the ratio of solvency, operational capacity and profitability.
1) Financial ratio reflecting solvency:
Short-term solvency: Short-term solvency refers to the ability of enterprises to repay short-term debts. Insufficient short-term solvency will not only affect the credit status of enterprises, increase the cost and difficulty of future financing, but also make enterprises fall into financial crisis and even go bankrupt. Generally speaking, enterprises should use current assets to repay current liabilities instead of selling long-term assets, so short-term solvency is measured by the quantitative relationship between current assets and current liabilities.
Current assets can be used to repay current liabilities, and can also be used to pay the funds needed for daily operations. Therefore, a high current ratio generally indicates that an enterprise has a strong short-term solvency, but too high will affect the efficiency and profitability of enterprise funds. How much is appropriate is not stipulated by law, because enterprises in different industries have different operating characteristics and different liquidity; In addition, this is also related to the respective proportions of cash, accounts receivable and inventory in current assets, because their liquidity is different. Therefore, quick ratio (excluding inventory and prepaid expenses) and cash ratio (excluding inventory, accounts receivable, prepayments and prepaid expenses) can be used to assist the analysis. It is generally considered that the current ratio is 2 and the quick ratio is 1, which is relatively safe. Too high may be inefficient, too low may be poorly managed. However, due to the different industries and operating characteristics of enterprises, they should be analyzed according to the actual situation.
Long-term solvency: Long-term solvency refers to the ability of an enterprise to repay long-term interest and principal. Generally speaking, enterprises borrow long-term liabilities mainly for long-term investment, so it is best to use the income generated by investment to repay interest and principal. Debt ratio and interest income multiple are usually used to measure the long-term solvency of enterprises. The debt ratio is also called financial leverage, because there is no need to repay the owner's equity, so the higher the financial leverage, the lower the protection for creditors. However, this does not mean that the lower the financial leverage, the better, because a certain amount of debt shows that the managers of the enterprise can effectively use the shareholders' funds and help shareholders to operate on a larger scale with less funds, so the low financial leverage shows that the enterprise has not made good use of its own funds.
2) Financial ratio reflecting operational capacity
Operational ability is to measure the efficiency of enterprise asset utilization by the turnover rate of various assets. The faster the turnover rate, the faster the assets of the enterprise enter the production, sales and other business links, so the shorter the cycle of income and profit formation, the higher the operating efficiency naturally. Generally speaking, it includes the following five indicators: should >>
Question 7: How to get started with financial analysis? Doing financial analysis requires the following abilities:
Have a good understanding of financial accounting
Good understanding of enterprise management and operation.
Strong communication skills.
We can work hard from the three aspects mentioned above.
In addition, in order to prevent us from falling into the trap of financial analysis rashly, the following is a list of self-questions before the analysis begins:
Is the nature and scope of the problem to be analyzed clear?
Do you really understand the importance and timely background of the problem?
What relevant assumptions, variables, relationships and trends are helpful to the analysis of the problem? What is their order of importance?
Is there a quick estimate or judgment to help you decide?
What are the key data and steps?
How long does it take to extract these key data (relative to the importance of the question, how necessary is it to answer accurately? Is it worth further refining the accuracy of the answer?
Is the source data used for analysis credible? If not, to what extent does this uncertainty affect the analysis results?
What kind of confirmation procedure is needed and how long will it take?
Is the data used for analysis related to cash flow or financial performance?
In other words, does the decision based on analysis affect financial performance, or in what way?
Is the proposed analysis method completely applicable to the analysis of this problem?
Will different analytical methods produce different results?
Is qualitative analysis important in specific circumstances?
If qualitative analysis is considered important, which quantitative analysis step can be omitted?
According to our experience in financial analysis for many years, we should also pay attention to the following matters:
Financial analysis focuses on usefulness, and don't excessively pursue professional forms.
Financial analysis should be "customer-oriented", grasp the main needs, and don't pursue comprehensiveness excessively.
It is useless to hand in a perfect report late.
Financial analysis reports should be streamlined. In most cases, do not exceed 2 pages. If you really need a long space, you must come straight to the point and list the main conclusions for people to see at a glance.
Don't put too much pressure on the business department for your own needs. Their main duty is not to provide you with data, but to win the market.
Financial analysis should not stop at the level of "talking about numbers based on numbers", but should go further and explore the reasons behind numbers. 7. Financial analysis should be "paradigm statement, personality interpretation".
Financial personnel who don't understand the business model can't write high-quality financial analysis reports.
The ultimate goal of financial analysis should be to promote action. Therefore, it is best to add your suggestions at the end of the report.
I hope you will develop a correct understanding of financial analysis from the beginning.
Question 8: financial analysis model essay: how to do financial analysis? Before writing the model essay on financial analysis, what is financial analysis? How to do a good job in financial analysis? Financial analysis is a discipline that uses a series of special analysis techniques and methods to make correct decisions on past and present fund-raising activities of economic organizations such as enterprises and provide accurate information or economic application based on relevant information such as accounting and statements. Before writing the model essay on financial analysis, what is financial analysis? How to do a good job in financial analysis? Financial analysis is an economic application subject based on accounting, statements and other relevant materials, which uses a series of special analytical techniques and methods to analyze and evaluate the past and present solvency, profitability and operational capacity of economic organizations such as enterprises, and provides accurate information or basis for investors, creditors, operators and other organizations or individuals concerned about enterprises to understand the past, evaluate the present situation, predict the future and make correct decisions. 1) Financial analysis is a comprehensive frontier subject. Financial analysis is a comprehensive frontier subject based on enterprise economic analysis, financial management and accounting. 2) Financial analysis model papers should have a complete theoretical system. The model essay of financial analysis should be more and more mature from connotation, purpose, function, content to principle, form and organization. 3) Financial analysis has a perfect methodology system. Financial analysis is superior to specialized technical methods, such as horizontal analysis, vertical analysis, trend analysis, ratio analysis, etc. These are specialized and effective analytical methods of financial analysis. 4) Financial analysis has a systematic and objective data base. The most basic data is financial statements. 5) Financial analysis has a clear purpose and function. The purpose of financial analysis is restricted by the subject of financial analysis and the service object of financial analysis. From the financial service object of financial analysis mode, financial analysis not only plays an important role in the internal production and operation management of enterprises, but also plays an important role in the decision-making of foreign investment, loan and credit sales. From the function of financial analysis, it plays an important role in forecasting, decision-making, planning, control, assessment and evaluation. The relationship between financial analysis and related disciplines The similarity between financial analysis and economic activity analysis lies in "analysis", which has the same or similar analysis procedures, methods and forms. The main difference is: 1) The object is different from the content. The object of financial analysis is the financial activities of enterprises, including financing, investment, consumption, recovery and distribution. The object of economic activity analysis is the economic activities of enterprises, besides financial activities, there are also production activities. 2) The basis of analysis is different. The basis of financial analysis is mainly the information of enterprise accounting statements, while the information of economic activity analysis includes all kinds of accounting data, statistical data, technical or business data, etc. 3) The objects of analysis are different. The subject of financial analysis is diversified, which can be investors, creditors, managers, employees and other departments, units or individuals related to or interested in the enterprise. Economic activity analysis is usually a kind of business analysis, and the main body of analysis is enterprise operators or employees. Through the above understanding of financial analysis, we take the company's financial analysis model as an example. How to do financial analysis? I. General comments on financial analysis model essay (I) The overall financial performance level is based on the data published by xxxx, and we comprehensively analyze it by using xxxx system and xxx analysis method. We believe that the financial position of xxxx in this period has increased greatly compared with the same period of last year. (2) The performance level of sub-items evaluated by the secondary company of the project company. Model essay on financial analysis-analysis of financial statements (I) Balance sheet 1. Description of the company's own assets and changes in assets: the company's assets in this period increased by xx% compared with the same period of last year, of which the fixed assets increased the most, amounting to xx million yuan. Enterprises should always pay attention to the production scale of enterprises. The change of product structure not only determines the profitability and development potential of enterprises, but also determines the production and operation form of enterprises. Therefore, investors are advised to dynamically track and study its changes. Among current assets, inventory assets account for the largest proportion, accounting for xx%, followed by credit assets, accounting for xx%, and the growth rate of current assets is xx%. In the change of current assets, the growth rate of monetary assets and short-term investment assets is greater than ...
Question 9: How to do financial analysis of small enterprises I. Analysis of operating performance
In general, users of accounting statements are more concerned about the operation of enterprises. When they get the statements, they often look at the business performance, that is, how many indicators such as profits have been completed, how effective they are, and whether they have increased compared with the same period in history. Financial analysis should first meet the needs of users of this part of accounting statements. Generally, it can be analyzed from the following aspects:
1. Analysis on the completion of indicators at the beginning of the year:
According to the annual business objectives set by the enterprise, this paper mainly analyzes the completion of the main business, so as to check whether the business develops according to the predetermined objectives and predict the progress in the future. Find out the gap by comparing the actual implementation results with the expected goals. Compared with the same period of last year, because the external environment and internal environment are changing, it may be affected by the outside world for a long time, so it is generally best to collect the financial information of the last three years. For example, for the analysis of income statement items, the comparison percentage method can be used, that is, all the indicators of the first period in the comparison period are set to 100%, and the report data of subsequent periods are converted into the percentage of the data of the first period, so as to find out the changes and development trends of each item, and then focus on some projects with great differences. This is more intuitive and easier to understand.
The impact of other businesses on the completion of the target will not be too great, and it can be simply analyzed; But we should pay attention to some new businesses, such as developing new markets and new products, or doing some special analysis to help report users make correct judgments and decisions.
2. Profitability analysis:
Profit index is the most important economic benefit index of an enterprise. The analysis of this indicator should focus on the profit and loss of the main business. Enterprises with foreign trade import and export rights can be divided into two parts: foreign trade and domestic sales, while the profit and loss analysis of other non-main business and non-operating income and expenditure can be simpler.
The calculation of financial ratio is relatively simple and difficult to explain and explain. If only the financial ratio is calculated without analysis, then nothing can be explained. Only by in-depth analysis can we find out the most direct reasons that affect the indicators.
3. Analysis of the impact of cost factors on profits:
If we further analyze the profit indicators, there are generally two ways. One method is to analyze the basic factors of cost, quantity and profit, such as unit price, variable cost, sales volume and fixed cost. In practical work, because the products involved in the main business are generally stable, the unit price, variable cost and other factors have not changed much (unless the added value of products is high or the price of raw materials fluctuates greatly), so we only need to compare and analyze the sales volume and fixed cost with previous years.
Another method is to analyze the profit structure. Starting with the components of the income statement, first, compare the sales income in multiple periods to see if there is any big change in sales in this period compared with previous years; Then convert other items into the percentage of sales revenue, see the proportion of each item in the income statement, which items change greatly, and further analyze the reasons. Non-operating income and expenditure and investment income are no exception. On the basis of structural percentage, it can also be analyzed in combination with some financial indicators. For example, the profit rate of cost and expense can be decomposed into the net profit rate of sales and the proportion of cost and expense in sales revenue, so as long as the proportion of any expense in sales revenue is known, how much return can be generated by this expense can be calculated, and enterprise managers can reduce costs, cut expenses and strive to obtain the maximum output with the least input.
Second, the efficiency analysis of asset management
The ratio of operating capacity of various assets of an enterprise reflects the management level and efficiency of managers in using existing assets. The rapid turnover of assets reflects the good liquidity of assets, strong solvency and full utilization of assets. The analysis of asset management efficiency is mainly carried out through the following indicators: accounts receivable turnover rate, inventory turnover rate, return on investment, fixed assets turnover rate, current assets turnover rate and total assets turnover rate.
Generally, the turnover of accounts receivable is analyzed by aging method, with emphasis on the overdue of accounts receivable. According to the credit status and importance of the unit, place an order, make a list, provide detailed information, and urge the person directly responsible to take the initiative to demand payment; The existing bad debts and bad debts should be analyzed in detail to attract the attention of management.
On the one hand, the analysis of inventory turnover rate should be compared with the previous period of the same industry and enterprise, and at the same time, the factors affecting inventory turnover rate should be further analyzed. One is to analyze the turnover rate of each component item in the inventory, and the other is to analyze the time when the inventory was produced and the existence of unsalable and moldy goods. & gt