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







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