Calculate the following data:

Profitability Analysis:

1. ROA.

1. ROA = Return on Asset=Net Income / Total Asset

= -252811/1189349 = -21.26%

1. Profit Margin.

Profit Margin = Net Income / sales.

= -252811/54052 = -467.72%

2. Assets Turnover.

A/R Turnover = Net Sales on Account / Average Account Receivable

= 54052/0 = No Answer (as the receivable balance is Nil, the ratio cannot be calculated

2. ROCE Analysis
   1. ROCE.

ROCE computation = net income preferred dividends / average common shareholders

Relating ROA to ROCE = return to creditors + return to proffered stockholder + ROCE

Disaggregation of ROCE =

ROCE = ROA x Adjusted Leverage

net income / A.common shareholders

= net income / A.total assets x net income to common stock / net income x average total assets / A.Shareholders equity

CEL(Common earnings leverage) = Net income - Preferred dividends / Net income + ( 1 - ) x Interest expense + MI in earnings

CSL (Capital structure leverage) = Average total assets / Average common equity

3. Risk Analysis:

Quick Ratio (Acid Test Ratio).

Quick ratio = cash + marteble security + recivable / current liabilities

2. Working capital Activity ratio.

Working capital activity ratio = A/R TURNOVER = net sales on account / Average account recievable

- Inventory TURNOVER = cost of goods sold / Average inventory

- A/P TURNOVER = PURCHASE ( cost of sales + ENG.inventort - BEG. Inventory ) / Average account payable

4. Long-Term Solvency Risk- Debt Ratios:
   1. L.T. Debt Ratio.

L.T Debt ratio = long term debt / long term debt + shareholders equity

2. Debt/Equity Ratio.

Debt/ equity ratio = long term debt / shareholders equity

3. L.T. Debt/Asset Ratio.

L.T Debt to assets ratio = long term debt / total Assets

5. Multiple Discriminant Analysis:
   1. Altman's Z-Score.

Altman's Z-Score = [ 1.2 x net working capital / total assets ] + [ 1.4 x retained earning / total assets ] + [ 3.3 x Earning before tax and interest / total assets ] + [ 0.6 x M.V Equity / Total Assets ] + [ 1 x Sales / Total Assets ]

ABRASIVES MANUFACTURING COMPANY SAOG Statement of financial Position as at 31 December 2018 2018 RO 2017 RO Note + ASSETS Non-current assets: Property, plant and equipment Available for sale investments Total non-current assets 995,510 176,495 1,011,694 197,069 1,172,005 1,208,763 16,902 16,902 6 7 8 10 442 442 17,334 Current assets: Inventories Trade receivables Amounts due from related parties Cash at bank and on hand Total current assets Total assets EQUITY AND LIABILITIES Shareholders' equity: Share capital Legal reserve Accumulated losses Fair value reserve Total shareholders' equity 17,334 1,189,349 1,226,107 9 1,000,000 1,191 (3.357,038) 105,969 1,000,000 1,191 (3,124,801) 126,543 5 (2.249,878) (1,997,076) Current liabilities: Borrowings Trade and other payables Amounts due to related parties Total current liabilities 12 8 3,135,310 104,609 199,204 2,904,036 108,389 210,749 3,439,123 3,223,174 Total equity and liabilities 1,189,245 1,226, 107 NET ASSETS VALUE PER SHARE (2.250) (1.997) ABRASIVES MANUFACTURING COMPANY SAOG Initial Un-audited Statement of profit or loss and other comprehensive income for the year ended 31" Dec 2018 2018 2017 54,052 50,262 Income Other operating income EXPENSES: General and administrative expenses Finance costs Total expenses (47,019) (239,270) (286,289) (94,088) (216,326) (260,152)) (232,237) (260,152) Loss before taxation Income tax expense Loss for the year Other comprehensive income: Change in fair value of available for sale Investments TOTAL COMPREHENSIVE LOSS FOR THE YEAR LOSS PER SHARE (20,574) 15,294 (252,811) (0/232) (244,858) (0/260)