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 Cash 1,200 1,480 1,800 Credit 11,800 14,320 17,200

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)

180 1,450 1,100 1,100 1,400 166 600 1,580 340

Profit before tax (PBT) (120) (1,462) 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) 11,900 12,500 1,470

Current assets

Cash and cash equivalents Accounts receivable Inventories

400 3,000 3,200

1,000 15,000 15,000

1,060 21,000 22,500

Total 18,500 43,500 46,030

Equity & Liabilities

Equity share capital (shares of USD 10 each) Reserve & Surplus Long-Term Borrowings Current Liabilities

7,176 1,364 7,360 2,600

9,412 12,292

4,448 11,876 12,360 4,062 17,280 17,800

Total 18,500 43,500 46,030

INDUSTRY AVERAGE OF KEY RATIOS

Ratio	Sector Average
Current Ratio	2:1
Acid test ratio (quick ratio)	1:1
Receivable turnover ratio	5 times
Receivable days	45 days
Long-term debt to total debt	13%
Debt to Equity ratio	25%
Gross profit ratio	25%
Net profit ratio	15%
Return on equity	17%
Return on total assets	8%
Total asset turnover ratio	1.3
Fixed asset turnover ratio	1.5
Current asset turnover ratio	2
Interest coverage ratio (times interest earned)	8
Working capital turnover ratio	5
Return on fixed assets	13%