Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
| COMPANY AUDITED FINANCIAL STATEMENTS | |||||
| 2019 | 2018 | 2017 | 2016 | 2015 | |
| GH¢’000 | GH¢’000 | GH¢’000 | GH¢’000 | GH¢’000 | |
| Revenue | 3,570,967 | 3,080,508 | 2,467,872 | 2,028,369 | 1,954,505 |
| Cost of Sales | -3,274,205 | -2,850,976 | -2,311,965 | -1,882,756 | -1,844,195 |
| Gross Proft | 296,762 | 229,532 | 155,907 | 145,613 | 110,310 |
| Other Income | 24,147 | 10,063 | 18,232 | 15,087 | 4,600 |
| Operating Expense | -207,995 | -157,570 | 129,063 | -117,770 | -80,410 |
| Oper Proft before Fin.Cost | 112,914 | 82,025 | 45,076 | 42,930 | 34,500 |
| Net Finance (Expenses) / Income | -8,650 | -5,830 | 4,435 | 7,068 | -1,802 |
| Proft before |
104,264 | 76,195 | 49,511 | 49,998 | 32,698 |
| Taxation | -32,469 | -22,081 | -10,176 | -14,742 | -10,487 |
| Net Proft After Tax | 71,795 | 54,114 | 39,335 | 35,256 | 22,211 |
| BALANCE SHEET | |||||
| ASSETS | |||||
| Non Current Assets | 675,695 | 527,955 | 412,105 | 306,682 | 190,013 |
| Available for Sale Financial Instruments / Investments | 8,500 | 7,125 | 7,260 | 5,648 | 9,102 |
| Stocks | 36,707 | 32,731 | 42,153 | 29,594 | 24,584 |
| Accounts Receivable | 571,828 | 475,426 | 396,780 | 313,983 | 267,302 |
| Short Term Investment | 12,602 | 10,323 | 8,455 | 56,836 | 5,366 |
| Income Tax Asset | 0 | 0 | 7,346 | 6,046 | |
| Cash and Bank Balances | 58,274 | 45,944 | 26,430 | 39,554 | 24,867 |
| Total Assets | 1,363,606 | 1,099,504 | 900,529 | 758,343 | 521,234 |
| LIABILITIES | |||||
| Medium Term Loan | 117,913 | 49,901 | 0 | 1,633 | 12,409 |
| Short Term Loan | 33,407 | 17,500 | 1,760 | 11,093 | 20,045 |
| Bank Overdrafts | 86,884 | 49,849 | 52,567 | 41,383 | 67,590 |
| Accounts Payable | 692,462 | 615,499 | 528,485 | 420,451 | 322,304 |
| 19,620 | 17,203 | 12,158 | 9,982 | 4,522 | |
| Taxation | 8230 | 250 | - | - | 707 |
| Total Liabilities | 958,516 | 750,202 | 594,970 | 484,542 | 427,577 |
| SHAREHOLDERS’ FUNDS | |||||
| Stated Capital | 185,589 | 185,589 | 185,589 | 185,589 | 31,809 |
| Building Fund | 18,220 | 13,763 | 10,361 | 7,788 | 5,426 |
| 194,450 | 142,703 | 102,226 | 74,654 | 47,198 | |
| Capital Surplus | 6,831 | 7,248 | 7,383 | 5,770 | 9,224 |
| Total | 405,090 | 349,302 | 305,559 | 273,801 | 93,657 |
| Total Liabilities & Shareholders’ funds | 1,363,606 | 1,099,504 | 900,529 | 758,343 | 521,234 |
Calculate the following ratios for the period 2015-2019 from the financial statements given above.
-
Gearing Ratios
-
Investment Ratios
What are your observations and recommendations from your calculations?
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