Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Task
The following information has been extracted from the accounts of R Ltd., a manufacturer and distributor of home cordless phone in Hong Kong.
000)
Profit and Loss accounts for the year ended 31 December
R Ltd
2010
Sales
4,800
Cost of sales
3,000
Gross Profit
1,800
Less: Expenses
Wages
500
Selling and administration
80
Advertising
220
Other overheads
275
1,075
Profit before interest and tax
725
Less: debenture interest
25
profit before tax
700
Taxation
100
Profit after tax
600
Dividends-preference shares
-12
- ordinary shares
-108
480
Balance Sheet as at 31 December
RLtd
(000)
Fixed Assets
300
450
Current Assets
Stock
1,230
trade debtors
1,000
Bank
250
2,280
1,700
Current Liabilities
trade creditors
350
405
Property tax payable
95
Net current assets
1,830
1,200
Total assets less current liabilities
2,130
1,650
Financed by:
1 ordinary shares
8% preference share
150
reserves
1,430
950
1880
1400
Long term liabilities
10% Debenture
Note:
There was no new issue of shares throughout the year of 2009 and 2010
The market prices per share on 31 December for 2010 and 2009 were $19.6 and $19 respectively.
Required
Analyse the financial statements using relevant techniques, such as ratios, to assess the financial viability of R Ltd
Carry out a performance audit for R on the 2009 and 2010 financial results with respective reference to the internal and external factors, for external factors please specifically consider the impact of the industry and market that R is in.
Use appropriate calculations to improve the quality of the financial information provided and calculated in (a) above.
Based on (a) , (b) and (c) above make recommendation on the strategic portfolio of R. (Please use BCG model for your recommendation. Assuming that the home cordless phone sector in Hong Kong is very keenly competitive and innovative. New product is launched in the market very quickly. R has 15% of the market share and finds it is quite difficult to hold or gain market share.)
Suggestion regarding Credit limit. Should it be approved or not, what should be the amount of credit limit that electronics give to Booth Plastics.
Advantages of Stock Repurchase 1. It may be seen as a true signal since repurchase may be motivated with management belief that firm's shares are undervalued. It is true in in
Advantage of Leasing an Asset 1. The company has the choice to purchase assets on the expiry of the lease period at that time it will identify the viability of the asset
Stock Market Index Definition of Stock Market Index An index is a numerical figure that measures relative change in variables between two type of durations. Examples
Assume the managers of Fort Winston Hospital are setting the price on a new outpatient service. Here are the relevant data estimates. Variable costs $ 5.00 Annual fixed c
Comments : The approved budget for 1997, reduced government spending in housing and urban development, health and human service, and education. Ignoring any other modifications, ho
Ask questioSay that a buyer of bonds values good bonds at $500 and values bad bonds at $250. Sellers of both good and bad bonds value them at $350. If the fraction of good sellers
Financial Forecasting Financial forecasting refers to determination of the firm of financial requirements in advance. Financial forecasting is needs financial planning using b
Why is cost classification important
What is the Process of Investing in Securities ? There are several process of investing in securities:- (1) Finding a Broker (2) Selection of Brokers (3) Opening an Account w
Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!
whatsapp: +91-977-207-8620
Phone: +91-977-207-8620
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd