Understanding Cash flows from P&L and B$/$S; Introduction to Financial Management and Common Size Statements & Financial Analysis using Ratios $($Sessions $2$ to $6)$

CLO $1$ & CLO $2$

Balance Sheet of Misleri Limited:

Balance Sheet $20242023$

Assets

Cash $7,28257,600$

Accounts Receivable $6,32,1603,51,200$

Inventories $12,87,3607,15,200$

Total Current assets $19,26,80211,24,000$

Gross Fixed Assets $12,02,9504,91,000$

Less: Accumulated Depreciation $2,63,1601,46,200$

Net Fixed Assets $9,39,7903,44,800$

Total Assets $28,66,59214,68,800$

Liabilities & Equity

Accounts Payable $5,24,1601,45,600$

Notes Payable $6,36,8082,00,000$

Accruals $4,89,6001,36,000$

Total Current Liabilities $16,50,5684,81,600$

Common Stock $(100,000$ shares$)4,60,0004,60,000$

Retained Earnings $32,5922,03,768$

Total Equity $4,92,5926,63,768$

Long$-$term debt $7,23,4323,23,432$

Total Liabilities & Equity $28,66,59214,68,800$

Income Statement for the year ended $2024$ & $2023$ of Misleri Limited:

Income Statement $20242023$

Sales $60,34,00034,32,000$

Cost of Goods Sold $55,28,00028,64,000$

Other Expenses $5,19,9883,58,672$

Total Operating costs excluding depreciation and amortization $60,47,98832,22,672$

Depreciation & amortization $1,16,96018,900$

EBIT $-1,30,9481,90,428$

Interest expense $65,00043,828$

EBT $-1,95,9481,46,600$

Taxes $(40\%)058,640$

Net Income $-1,95,94887,960$

You are required to:

$1.$ Prepare the common size and common base Profit and Loss statement and Balance Sheet for Misleri Limited for both the years. For Common Base statements you have to take the corresponding values of $2023$ as the base year $(10$ m$)$

$2.$ Prepare ROE, Net Profit Margin and Current ratios for the company for both the years. $($Don$$t use average values$)(12$ m$)$

$3.$ Based on the all of the working calculated in the above two questions, evaluate and comment on the health and performance of the company over the last two years. $(3$ m$)$