THE HONDA MOTOR COMPANY Consolidated Statements of Financial Position Yen (millions) Mar. 31, 2018 Mar. 31, 2019
Question:
THE HONDA MOTOR COMPANY
Consolidated Statements of Financial Position Yen (millions) Mar. 31, 2018 Mar. 31, 2019 Assets Current assets: Cash and cash equivalents 2,256,488 2,494,121 Trade receivables 800,463 793,245 Receivables from financial services 1,840,699 1,951,633 Other financial assets 213,177 163,274 Inventories 1,523,455 1,586,787 Other current assets 291,006 358,234 Total current assets 6,925,288 7,347,294 Non-current assets: Investments accounted for using the equity method 679,517 713,039 Receivables from financial services 3,117,364 3,453,617 Other financial assets 436,555 417,149 Equipment on operating leases 4,088,133 4,448,849 Property, plant and equipment 3,062,433 2,981,840 Intangible assets 741,514 744,368 Deferred tax assets 129,338 150,318 Other non-current assets 169,022 162,648 Total non-current assets 12,423,876 13,071,828 Total assets 19,349,164 20,419,122 Liabilities and Equity Current liabilities: Trade payables 1,224,627 1,184,882 Financing liabilities 2,917,261 3,188,782 Accrued expenses 404,719 476,300 Other financial liabilities 115,405 132,910 Income taxes payable 53,595 49,726 Provisions 305,994 348,763 Other current liabilities 602,498 599,761 Total current liabilities 5,624,099 5,981,124 Non-current liabilities: Financing liabilities 3,881,749 4,142,338 Other financial liabilities 60,005 63,689 Retirement benefit liabilities 404,401 398,803 Provisions 220,625 220,745 Deferred tax liabilities 629,722 727,411 Other non-current liabilities 294,468 319,222 Total non-current liabilities 5,490,970 5,872,208 Total liabilities 11,115,069 11,853,332 Equity: Common stock 86,067 86,067 Capital surplus 171,118 171,460 Treasury stock (113,271) (177,827) Retained earnings 7,611,332 7,973,637 Other components of equity 178,292 214,383 Equity attributable to owners of the parent 7,933,538 8,267,720 Non-controlling interests 300,557 298,070 Total equity 8,234,095 8,565,790 Total liabilities and equity 19,349,164 20,419,122
Question 1
Calculate and comment on the following ratios for Honda Motor Company for 2018 and 2019.
- Net profit Ratio
- Return on ordinary Shareholders Equity
- Stock turnover ratio (for 2019 only)
- Current Ratio
- Acid Test
Question 2
- Prepare a Statement of changes in working capital for Honda Motor
Company for 2018/2019, including % changes in the working capital
components. Explain the changes in the working capital components.
Question 3
Prepare a Sales Budget and a Schedule of Expected Cash Collections for Honda Motor Company for the year ended 31 March 2020. Take into account the following assumptions.
Quarter Percentage of Total Sales
- 25%
- 30%
- 21.5%
- 23.45%
- Percentage of sales collected in the period of the sales : 70%
- Percentage of sales collected in the period after the sales: 30% .
Financial Accounting
ISBN: 978-1118978085
IFRS 3rd edition
Authors: Jerry J. Weygandt, Paul D. Kimmel, Donald E. Kieso