Case study An experienced budget analyst at Al Rawa, has been charged with assessing the firm's...

  

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Case study An experienced budget analyst at Al Rawa, has been charged with assessing the firm's financial performance during 2021 and its financial position at year-end 2021. To complete this assignment, she gathered the firm's 2021 financial statements (below). In addition, he obtained the firm's ratio values for 2019 and 2020, along with the 2021 industry average ratios (also applicable to 2019 and 2021). TO DO Q1. Use the firm's 2021 financial ratios, and then fill in the preceding table. (Assume a 365-day year.) (28 marks) (2 mark each ratio listed above )c3 Q2. Analyze the firm's current financial position from both a cross- sectional and a time-series viewpoint. Break your analysis into evaluations of the firm's liquidity, activity, debt, profitability, and market. (10 marks) (2 marks each category)c5 Q3. Summarize the firm's overall financial position on the basis of your findings in part b (8 marks )c7 Technica, Inc. Statement of Retained Earnings for the Year Ended December 31, 2003 Retained earnings balance (January 1, 2003) Plus: Net profits after taxes (for 2003) Less: Cash dividends (paid during 2003) Retained earnings balance (December 31, 2003) $50,200 42,900 (20,000) $73,100 Assets Cash Marketable securities Accounts receivable Inventories Total current assets Land and buildings Machinery and equipment Furniture and fixtures Other Technica, Inc. Balance Sheets Total gross fixed assets Less: Accumulated depreciation Net fixed assets Total assets Liabilities and Stockholders' Equity Accounts payable Notes payable Accruals Total current liabilities Long-term debt Stockholders' equity Common stock equity (shares outstanding: 19,500 in 2003 and 20,000 in 2002) Retained earnings Total stockholders' equity Total liabilities and stockholders' equity December 31 2003 $ 15,000 7,200 34,100 82,000 $138,300 $150,000 200,000 54,000 11,000 $415,000 145,000 $270,000 $408,300 $ 57,000 13,000 5,000 $ 75,000 $150,000 $110,200 73,100 $183,300 $408,300 2002 $ 16,000 8,000 42,200 50,000 $116,200 $150,000 190,000 50,000 10,000 $400,000 115,000 $285,000 $401,200 $ 49,000 16,000 6,000 $ 71,000 $160,000 $120,000 50,200 $170,200 $401,200 Technica, Inc. Income Statement for the Year Ended December 31, 2003 Sales revenue Less: Cost of goods sold Gross profits Less: Operating expenses General and administrative expense Depreciation expense Total operating expense Operating profits Less: Interest expense Net profits before taxes Less: Taxes Earnings available for common stockholders Earnings per share (EPS) $30,000 30,000 $600,000 460,000 $140,000 60,000 $ 80,000 10,000 $ 70,000 27,100 $ 42,900 $2.15 Case study An experienced budget analyst at Al Rawa, has been charged with assessing the firm's financial performance during 2021 and its financial position at year-end 2021. To complete this assignment, she gathered the firm's 2021 financial statements (below). In addition, he obtained the firm's ratio values for 2019 and 2020, along with the 2021 industry average ratios (also applicable to 2019 and 2021). TO DO Q1. Use the firm's 2021 financial ratios, and then fill in the preceding table. (Assume a 365-day year.) (28 marks) (2 mark each ratio listed above )c3 Q2. Analyze the firm's current financial position from both a cross- sectional and a time-series viewpoint. Break your analysis into evaluations of the firm's liquidity, activity, debt, profitability, and market. (10 marks) (2 marks each category)c5 Q3. Summarize the firm's overall financial position on the basis of your findings in part b (8 marks )c7 Technica, Inc. Statement of Retained Earnings for the Year Ended December 31, 2003 Retained earnings balance (January 1, 2003) Plus: Net profits after taxes (for 2003) Less: Cash dividends (paid during 2003) Retained earnings balance (December 31, 2003) $50,200 42,900 (20,000) $73,100 Assets Cash Marketable securities Accounts receivable Inventories Total current assets Land and buildings Machinery and equipment Furniture and fixtures Other Technica, Inc. Balance Sheets Total gross fixed assets Less: Accumulated depreciation Net fixed assets Total assets Liabilities and Stockholders' Equity Accounts payable Notes payable Accruals Total current liabilities Long-term debt Stockholders' equity Common stock equity (shares outstanding: 19,500 in 2003 and 20,000 in 2002) Retained earnings Total stockholders' equity Total liabilities and stockholders' equity December 31 2003 $ 15,000 7,200 34,100 82,000 $138,300 $150,000 200,000 54,000 11,000 $415,000 145,000 $270,000 $408,300 $ 57,000 13,000 5,000 $ 75,000 $150,000 $110,200 73,100 $183,300 $408,300 2002 $ 16,000 8,000 42,200 50,000 $116,200 $150,000 190,000 50,000 10,000 $400,000 115,000 $285,000 $401,200 $ 49,000 16,000 6,000 $ 71,000 $160,000 $120,000 50,200 $170,200 $401,200 Technica, Inc. Income Statement for the Year Ended December 31, 2003 Sales revenue Less: Cost of goods sold Gross profits Less: Operating expenses General and administrative expense Depreciation expense Total operating expense Operating profits Less: Interest expense Net profits before taxes Less: Taxes Earnings available for common stockholders Earnings per share (EPS) $30,000 30,000 $600,000 460,000 $140,000 60,000 $ 80,000 10,000 $ 70,000 27,100 $ 42,900 $2.15

Answer rating: 100% (QA)

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