Profitability ratios of the company, Financial Econometrics

Study the following Goget financial statements and answer the questions below.

Statement of Comprehensive Income for the year ended 31 Dec 2012

                                                                31 Dec 11                     31 Dec 12

Sales                                                        4 005 153                     4 440 654

Cost of sales                                            1 968 238                     2 105 827  

 Gross Profit                                               2 036 915                     2 334 827

 

Expenses

         992 086  

1 134 525

Selling & Distribution costs

421 969

499 931

Marketing expenses

130 026

163 708

Research and development

64 472

65 287

Fixed and admin expenses                                 375 619                                               405 599

 

 

 

Operating Profit

 

 

1 044 829

 

 

1 200 302

Finance Income

38 680

59 288

Finance costs

-56 411

-40 473

Dividend Income

             9 619                           10 647  

Profit before tax and abnormal items

      1 036 717                       1 229 764  

Abnormal item

-                        269 000

Taxation

         246 835                         317 536  

Net Profit after tax

789 882                        643 228

  Dividend                                                                -                                   -  

Retained Earnings                                        789 882                        643 228

Capital and Reserves

Issued Share Capital

17 363

17 365

Share premium

1 203 854

1 190 290

NDR

77 494

349 061

Retained Earnings

  1 001 942           1 357 939       

Total shareholders Equity

2 300 653           2 914 655

Non-controlling interest

       24 943             158 685       

  Total Equity                                                   2 325 596            3 073 340      

 

Long-term Loan

  Other long-term liabilities                                 

117 076

20 981       

453 830

       39 769       

Non-Current Liabilities

138 057

493 599

 

 

Bank Overdraft

 

 

221

 

 

-

Trade payables

630 743

957 922

Short term borrowings

194 405

126 787

Provisions

68 752

84 464

  Taxation payable                                      

29 726

21 233

Current Liabilities

923 847

1 190 406

 

 

Total Equity and Liabilities

 

 

3 387 500

 

 

4 757 345

 

 

ASSETS

 

 

 

Property plant and Equipment

 

599 746

 

857 471

Deferred Tax

20 030

23 967

Investments

138 037

139 012

Investments in Associates

12 200

12 200

 Intangible assets                                             304 240             424 149      

Non-Current Assets                                       1 074 253           1 456 799

Inventories

583 704

719 236

Trade and other receivables

1 036 605

1 150 393

  Cash and cash equivalents                                692 938           1 430 917       

Current Assets

 

2 313 247

3 300 546

 

 

Total Assets

 

 

 

3 387 500

 

 

4 757 345

 

 

 

With the use of ratios:

 

 

 









 

Calculate and comment  on any three liquidity of the Goget Company.

Calculate and comment any three profitability ratios of the company.

Calculate and comment on any three turnover ratios.

Concerning the Auditor's report answer the following:

 

Who  is  responsible  for  the  preparation  of

the

Annual

 

financial statements?

 

(1)

 To whom should an audit report addressed to and why?   (2)

What is the difference between a qualified and unqualified audit opinion.

Posted Date: 4/1/2013 2:58:35 AM | Location : United States







Related Discussions:- Profitability ratios of the company, Assignment Help, Ask Question on Profitability ratios of the company, Get Answer, Expert's Help, Profitability ratios of the company Discussions

Write discussion on Profitability ratios of the company
Your posts are moderated
Related Questions
Determine whether the proposed investment in Gujistan satisfies the investment criteria set by PASE plc. Also discuss the limitations of the criteria in the context of this project

Q. Show example on aggressive working capital policy? With an aggressive working capital policy, a company would hold minimal levels of inventories in order to minimise costs.

If an investment is expected to return of 5 percent in the future, a $53,000 investment will grow to how much in 22 years?

Q. Explain Working capital ratios? Ratios are a way of comparing financial values and quantities to improve our understanding. In particular they are used to assess the perform

Question I: (50 points) Derive the pricing formula for the expected excess return of a risky stock and the riskfree stock in the traditional consumption-CAPM assuming that the leve

1. Apply investment appraisal techniques to project cash flows in different business scenarios and in situations of uncertainty, to arrive at investment decisions and to evaluate t

Question 1 Suppose that you have 150 observations on production (yt) and investment (it), and you have estimated the following ADL(3,2) model: (1 – 0.5L – 0.1L2 – 0.05L3)yt = 0.7

Question: (a) What do you understand by these processes? Autoregressive Distributed lag Moving Average (b) Write down an AR(2) process and a MA(1) process. (c) Calc

Evaluate the impact of monetary and fiscal policies and the multiplier in achieving economic goals. 1. Summarize the articles with your own words, 2. Write a short explanatio

Problem : PART A (a) Analyse Keynes's model of liquidity preference. (b) Analyse the instruments central banks use to control the supply of money in the economy. PA