ENDLESS Berhad is planning to extend their investment to other companies. Following ratios were calculated and...

 

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ENDLESS Berhad is planning to extend their investment to other companies. Following ratios were calculated and provided to the director of ENDLESS BERHAD does not know how to interpret the ratios. Return on capital employed Current ratio Ratio Acid test ratio Debts to Equity ratio Earnings per share b) c) MyCo 32% 2.3:1 1.8:1 90% 9 sen YourCo 33% 2.2:1 2:01 70% 7 sen OurCo 29% 2.25:1 1.9:1 140% 6 sen Required: a) As a free-lance consultant, you are required to write a report to director of ENDLESS BERHAD to comment on ratios of the companies above. Provide suggestion to director of ENDLESS BERHAD and support your comments where appropriate with the ratios above. Industry average 30% 2:01 2:01 100% 8 sen (15 marks) Based on your report, you are required to highlight two (2) limitations of financial statement analysis to the director of ENDLESS BERHAD. (5 marks) Using relevant illustrations, differentiate right issue and bonus issue of shares. (5 marks) ENDLESS Berhad is planning to extend their investment to other companies. Following ratios were calculated and provided to the director of ENDLESS BERHAD does not know how to interpret the ratios. Return on capital employed Current ratio Ratio Acid test ratio Debts to Equity ratio Earnings per share b) c) MyCo 32% 2.3:1 1.8:1 90% 9 sen YourCo 33% 2.2:1 2:01 70% 7 sen OurCo 29% 2.25:1 1.9:1 140% 6 sen Required: a) As a free-lance consultant, you are required to write a report to director of ENDLESS BERHAD to comment on ratios of the companies above. Provide suggestion to director of ENDLESS BERHAD and support your comments where appropriate with the ratios above. Industry average 30% 2:01 2:01 100% 8 sen (15 marks) Based on your report, you are required to highlight two (2) limitations of financial statement analysis to the director of ENDLESS BERHAD. (5 marks) Using relevant illustrations, differentiate right issue and bonus issue of shares. (5 marks)

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A Report to director of Endless Berhad As ENDLESS Berhad is planning to extend their investment to other companies Return on capital employed is consi... View the full answer