Students in group of 8 members will work together on one of the first ten (10) companies provided in excel file. Group member number 1 should choose company number 1; Group member number 2 should choose company number 2; Group member number 3 should choose company number 3 etc.

Assignment

Topic                          : Assessing Firm's Financial Performance

Type of analysis          : Ratio Analysis

Period of analysis        : Latest available 4 years data

Marks                         : 20 marks

Required analysis / Contents of report:

Obtain the 4 years information of the balance sheet and Income statement of your chosen company. Present the information in TWO tables, one for 4 years B/S and the other for 4 years I/S.

Express the B/S and I/S in common-size percent and Trend Percent using the beginning year of the 4-year analysis as base year.

Analyse and comment on the financial statements (B/S and I/S) focusing on the following:

·        plant and equipment

·        Sales, gross profit, and net income

·        cost of goods sold and operating expenses

·        efficiency in use of its assets

·        the short-term liquidity

·        changes in accounts receivable

·        (Note: Comment not more than 10 lines)

For the years ended December 31, of the 3^rd and 4^th years of your analysis, assume all sales are on credit and then compute the following:

·        collection period,

·        (b) accounts receivable turnover,

·        (c) inventory turnover, and

·        (d) days' sales in inventory.

·        Based on your estimates, comment on the changes in the ratios from the 3^rd to 4^th year by   drawing conclusion regarding efficiency in managing inventory and in collecting receivables .

Provide your recommendations for improving the financial condition of your company.

My question/part is

Assume all sales are on credit (Last Two elements and recommendations)

the company we chose name is ( Guan Chong Berhad (GCB) )

pur-new-sol

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