Accounting For Business Decisions Assignment T1 2015
Accounting For Business Decisions Assignment T1 2015
Accounting For Business Decisions Assignment T1 2015
(6 marks)
(10 marks)
Use the annual report for the year ending 2013 & 2014. Your group will need to review the
major sections of this report in order to familiarize yourselves with the content of each of the
financial statements and appropriate notes to the financial statements.
Review the balance sheet of the company and indicate the amount of the following:
a) Total current assets
b) Total non-current assets
c) Total current liabilities
d) Total non-current liabilities
e) Total stockholders equity
Compare the above figures with the previous year and compute the percentage increase or
decrease and comment on the comparative financial condition of the company.
Part A3
(10 marks)
Compare the above figures with the previous year and compute the percentage increase or
decrease and comment on the comparative financial operation of the company.
Part A4
(10 marks)
Review the statement of cash flows for the most recent year and indicate the
following:
a)
b)
c)
d)
Analyse the Cash Flow Statements for the last 2 years and comment on the cash
position of the company.
Part A5
(10 marks)
Review the stockholders' equity section in your chosen company's most recent year-end
balance sheet and compare that with the previous year-end balance sheet. Compare percentage
increase or decrease.
List the stockholders' equity account balances and number of outstanding shares
from these two balance sheets and compute the increase or decrease for each
during this past year.
(54 marks)
a) Using the same Financial Statements of the company your group has chosen, determine
the profitability, activity, liquidity and leverage using all the ratios below. Use the end of
the year financial statements. (14 marks)
b) Give a 300 word analysis for each of the following:
I.
Profitability (10 marks)
II.
Activity (10 marks)
III.
Liquidity (10 marks)
IV.
Financing (10 marks)
Ratio Calculations
Ratio
Numerator
Denominator
A. Profitability ratios
a)
b)
c)
d)
e)
Return on equity
Return on assets
Profit margin
Cash flow to total assets
Price-to-earnings ratio
Shareholders equity
Total assets
Sales/Revenue
Total assets
Earnings per share
Sales
Credit sales
365
Total assets
Average trade debtors
Debtors turnover ratio
C. Liquidity ratios
a) Current (working capital) ratio Current assets
b) Quick ratio
Cash + Accounts receivable +
Short-term investments
c) Interest coverage ratio
Earnings before interest & tax
Current liabilities
Current liabilities
Net interest expense
D. Financing ratios
a) Debt-to-equity ratio
b) Debt-to-assets ratio
c) Leverage ratio
Total liabilities
Total liabilities
Total assets
Due Date:
Friday 29th May, 2015. Dont forget to upload the softcopy to the Safeassign
both self-check and final submission, one per group. In the safeassign, please
identify the assignment by the student number. Do not upload more than one
copy. Attach the first page of the final safeassign report to the assignment
after the official cover page. The Lecturer will give the instructions where the
hard-copy should be submitted.