Stora Enso is a Finnish integrated global paper producer. Its sales have varied significantly over the past four years. The Group had, in 2011, some 30,000 employees in more than 35 countries worldwide. The operations of Stora Enso and its subsidiaries are organized into business areas: Magazine Paper, Newsprint and Book Paper, Fine Paper, Consumer Board, Industrial Packaging, Wood Products, and Other, the latter comprising Wood Supply and supporting activities such as Energy and Head Office, together with other corporate functions. From its annual reports 2007 through 2011, we extracted the following consolidated statements of financial position and income statements, which have been prepared in accordance with International Financial Reporting Standards. Given the introductory nature of this case study, the consolidated statement of financial position and income statement have been simplified. Some line items have been grouped and are indicated by an asterisk (*). The original version is available to the instructors on the book€™s website

Required
1 Prepare the common-size income statements (i.e., all figures in percentage of net sales).
2 Whenever possible, compute the ratios which have been introduced at the end of the chapter for the years 2008 through 2011.
3 Analyze the financial situation and performance of the Stora Enso Group on the basis of these ratios and the common-size income statement with a focus on growth potential, evolution of the risk level and evolution of the time horizon for which you feel Stora Enso will remain a going concern

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Stora Enso - Consolidated statement of financial position (simplified) As at 31 December EUR million 2011 2010 2009 2008 2007 Assets Fxed Assets and Non-current Investments Goodwill and other intangible assets Property, plant and equipment 282.1 4,942.5 267.4 661.8 5,413.76,476.7 285.1 279.7 5,066.9 4,700.2 5,224.6 5,334.3 4,979.9 5,698.8 7,138.5 2,855.1 8,389.3 8,542.6 7,835.08,272.1 10,022.3 Other non curent assets 3,164.7 3,208.3 2,573.3 2,883.8 CurentAssets Inventories Tax recaivables Curentoperatve reoaivables Interest-bearng reoevables Cash and cash equvalents 1,528.7| 1,474.6 | 1,281.6| 1,553.6| 1迎.8 34.3 6.2 1.7 25.0 1,654.6 1,621.8 1,362.61,583.2 2,063.1 281.5 1,138.8 295.1 1,110.9 227.8 970.7 3,758.23,968.7 5,288.5 221.2 890.4 251.1 415.8 12,999. 13,036.7 11,593.2 12,240.8 15,310.8 Total Assets Eauity and Liabilites Equity Share capital and share premum Other equty elements Retained earrings Net proftloss) for the period Total Equity Non-current Liabilities Current Liabilities Current portion of non-cument debt Interest-bearng liabilities and bank 2010 2009 2008 2007 2011 1,4188 1,418.8 1,418.83,618.6 3,618.6 3,048.32,491.3 2,137.8 2,825.3 3,427.0 5,959.8 6,254.7 5,182.55,650.5 7,665.5 1.1530 ,578.6 2505.6-1 -120.0 834.6 339.7 766.0 879.7 -673.4 214.7 4,253. 4,212.9 3,79133,815.14,452.7 250.0 784.0 303.5 448.5 814.8 223.5 513.1 630.9573.6 437.4 overdras Current operatwe liabilties and tax labilities 1,752.2 1,8171 2,786.22,569.1 1,581.1 1,706.9 2,105.9 2,775.2 3,192.6 Total Equity and Liabilities 12,999.1 13,036.7 11,593.212,240.8 15,310.8 Stora Enso-Consolidated income statement (simplified) EUR million 2011 2010 2009 2008 2007 Continuing Operations Sales Other operating income Changes n inventories of fnished goods and workin progress Mateiais and services Freight and salas commissions Personnel expenses Other operating expenses Share of resuts in equity accounted investments Depreciation, amortisation and impaiment charges Operating Profit/(Loss) Financial income 10,964.9102969 8,945.1 11,0288 11,8485 88.4 81.0 -6,998.5 -641,-6815.77,051.5 208.9 31.7 172.8 64.2-200.5781 159.1 120.2 -1,018.91,010.1833.6271,1339 -1,393.91,375.31,349.6-1,6691-1,712.9 -580.3-486.2836.4-7708754,4 118.0 71.9 7.6 341.3 -572.6282.7-1,152.91,422.41,5296 759.3 986.2-607.6- 176.9 161.9 1925-88.5523.9-318.6 20.2 726.6 356.7 42.9 91.6 209.3 Financial expanse Profit/(Loss) before Tax Income tax Net Profit/Loss) for the Year from Continuing Operations Discontinued Operations: Profit after Tax for the Year Net Profit//Loss) for the Year from Total Operations -381.31 8853-886.8-893.8 420.9 -78.7116.0 342.2 769.3 878.26790 12.8 8.8 214.8 4.3 225.2 342.2769.3 -8782-674.7212.4