Complete all questions below: 1. Prepare a report by Analyzing the Financial statements and doing a...

  

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Complete all questions below: 1. Prepare a report by Analyzing the Financial statements and doing a trend analysis. The report will be used in Financial planning process. 2. Calculate 10 ratios and compare them with market benchmark stating your observation. 3. State and discuss the matters to consider and the basis of their calculation while preparing Financial budget for a Cafe or a clothing retail shop. Statement of Comprehensive Income, Jan to Dec (IN USD '000) 2017 2018 2019 Sales 1,800 17,200 Cash 1,200 1,480 Credit 11,800 14,320 Total Sales 13,000 15,800 19,000 Cost of goods sold 11,240 12,832 14,800 Gross profit 1,760 2,968 4,200 Operating expenses: General, admin, and selling expenses Depreciation Interest expenses (on borrowings) Profit before tax (PBT) 180 1,450 1,400 1,580 (1,462) 1,100 1,100 166 600 340 (120) 2,594 Tax @30% (36) (439) 778 Profit after tax (PAT) (84) (1,023) 1,816 Statement of Balance Sheet as of date (USD "000) 2017 2018 2019 Assets Fixed assets (net of depreciation) Current assets 11,900 12,500 1,470 400 1,060 Cash and cash equivalents Accounts receivable 1,000 15,000 15,000 43,500 3,000 21,000 22,500 Inventories 3,200 Total 18,500 46,030 Equity&Liabilities Equity share capital (shares of USD 10 each) Reserve & Surplus Long-Term Borrowings Current Liabilities Total 7,176 12,292 11,876 9,412 1,364 7,360 4,448 4,062 17,800 12,360 2,600 18,500 17,280 43,500 46,030 INDUSTRY AVERAGE OF KEY RATIOS Ratio Current Ratio Acid test ratio (quick ratio) Receivable turnover ratio Receivable days Long term debt to total debt Debt to Equity ratio Sector Average 2:1 1:1 S times 45 days 13% 25% Gross profit ratio 25% Net profit ratio Return on equity Return on total assets Total asset turnover ratio Fixed asset turnover ratio 15% 17% 8% 1.3 1.5 Current asset turnover ratio Interest coverage ratio (times interest earned) Working capital turnover ratio Return on fixed assets 13% Complete all questions below: 1. Prepare a report by Analyzing the Financial statements and doing a trend analysis. The report will be used in Financial planning process. 2. Calculate 10 ratios and compare them with market benchmark stating your observation. 3. State and discuss the matters to consider and the basis of their calculation while preparing Financial budget for a Cafe or a clothing retail shop. Statement of Comprehensive Income, Jan to Dec (IN USD '000) 2017 2018 2019 Sales 1,800 17,200 Cash 1,200 1,480 Credit 11,800 14,320 Total Sales 13,000 15,800 19,000 Cost of goods sold 11,240 12,832 14,800 Gross profit 1,760 2,968 4,200 Operating expenses: General, admin, and selling expenses Depreciation Interest expenses (on borrowings) Profit before tax (PBT) 180 1,450 1,400 1,580 (1,462) 1,100 1,100 166 600 340 (120) 2,594 Tax @30% (36) (439) 778 Profit after tax (PAT) (84) (1,023) 1,816 Statement of Balance Sheet as of date (USD "000) 2017 2018 2019 Assets Fixed assets (net of depreciation) Current assets 11,900 12,500 1,470 400 1,060 Cash and cash equivalents Accounts receivable 1,000 15,000 15,000 43,500 3,000 21,000 22,500 Inventories 3,200 Total 18,500 46,030 Equity&Liabilities Equity share capital (shares of USD 10 each) Reserve & Surplus Long-Term Borrowings Current Liabilities Total 7,176 12,292 11,876 9,412 1,364 7,360 4,448 4,062 17,800 12,360 2,600 18,500 17,280 43,500 46,030 INDUSTRY AVERAGE OF KEY RATIOS Ratio Current Ratio Acid test ratio (quick ratio) Receivable turnover ratio Receivable days Long term debt to total debt Debt to Equity ratio Sector Average 2:1 1:1 S times 45 days 13% 25% Gross profit ratio 25% Net profit ratio Return on equity Return on total assets Total asset turnover ratio Fixed asset turnover ratio 15% 17% 8% 1.3 1.5 Current asset turnover ratio Interest coverage ratio (times interest earned) Working capital turnover ratio Return on fixed assets 13%

Answer rating: 100% (QA)

1 Financial analysis is the process of examining the performance and suitability of firms projects budgets and other financial operations Financial analysis is often done to establish whether or wheth... View the full answer