Item ACF ADBRI Limited Balance Sheet 7,238,511.00 Balance Sheet Cash 94,000,000.00 Receivables 17,947,686.00 191,100,000.00 Prepaid Expenses Inventories 1,182,467.00 9,600,000.00 5,577,745.00 152,100,000.00 Investments 0.00 0.00 NCA Held Sale 72,854.00 0.00 Other 239,747.00 5,700,000.00 Total Current Assets 32,259,010.00 452,500,000.00 Receivables 0.00 45,600,000.00 Inventories 0.00 0.00 Investments 0.00 197,800,000.00 1,141,800,000.00 ৪,600,000.00 PP&E 108,432,088.00 Intangibles(EXGW) 0.00 Goodwill 7,428,704.00 272,500,000.00 Future Tax Benefit t 0.00 0.00 Other 99,411.00 4,100,000.00 Total NCA 115,960,203.00 1.670,400,000.00 Total Assets 148,219,213.00 2,122,900,000.00 Account Payable 19,727,810.00 172,000,000.00 Short-Term Debt 9,401,859.00 3,900,000.00 Provisions 4,686,028.00 37,700,000.00 NCL Held Sale 67,317.00 0.00 Other 350,000.00 7,700,000.00 Total Curr. Liabilities 34,233,014.00 221,300,000.00 Account Payable 3,331,309.00 0.00 NLong-Term Debt 46,566,911.00 550,900,000.00 Provisions 5,792,745.00 128,700,000.00 Other 0.00 0.00 Total NCL 55,690,965.00 679,600,000.00 Total Liabilities 89,923,979.00 900,900,000.00 Share Capital 45,674,176.00 740,100,000.00 Reserves 914,264.00 (6,200,000.00) Retained Eamings Other Equity Convertible Equity 11,706,794.00 485,800,000.00 0.00 0.00 0.00 0.00 SE Held Sale 0.00 0.00 Outside Equity 2,300,000.00 Total Equity 58,295,234.00 1,222,000,000.00 Required (Show the workings/ calculations): (a) Using the financial information provided above, calculate each of the following financial ratios for ACF and ABC (Use closing balance to calculate and round up numbers to 2 decimal places 0.xx or x%). FY 2020 ACF ABC Return on Equity (ROE) Net Profit Margin Asset Turnover Capital Structure Leverage (b) Using the financial information provided above, prepare a common-size income statemen for both companies (Use closing balance to calculate and round up numbers to 2 decimal place: 0.xx or x%). (c) Decompose ROE using the traditional approach. What drives the difference in ROE between ACF and ABC? (d) Comment on ACF and ABC's EBITDA margin and Operating expense/Sales ratios. How did strategic decisions made by these companies affect these ratios?
Item ACF ADBRI Limited Balance Sheet 7,238,511.00 Balance Sheet Cash 94,000,000.00 Receivables 17,947,686.00 191,100,000.00 Prepaid Expenses Inventories 1,182,467.00 9,600,000.00 5,577,745.00 152,100,000.00 Investments 0.00 0.00 NCA Held Sale 72,854.00 0.00 Other 239,747.00 5,700,000.00 Total Current Assets 32,259,010.00 452,500,000.00 Receivables 0.00 45,600,000.00 Inventories 0.00 0.00 Investments 0.00 197,800,000.00 1,141,800,000.00 ৪,600,000.00 PP&E 108,432,088.00 Intangibles(EXGW) 0.00 Goodwill 7,428,704.00 272,500,000.00 Future Tax Benefit t 0.00 0.00 Other 99,411.00 4,100,000.00 Total NCA 115,960,203.00 1.670,400,000.00 Total Assets 148,219,213.00 2,122,900,000.00 Account Payable 19,727,810.00 172,000,000.00 Short-Term Debt 9,401,859.00 3,900,000.00 Provisions 4,686,028.00 37,700,000.00 NCL Held Sale 67,317.00 0.00 Other 350,000.00 7,700,000.00 Total Curr. Liabilities 34,233,014.00 221,300,000.00 Account Payable 3,331,309.00 0.00 NLong-Term Debt 46,566,911.00 550,900,000.00 Provisions 5,792,745.00 128,700,000.00 Other 0.00 0.00 Total NCL 55,690,965.00 679,600,000.00 Total Liabilities 89,923,979.00 900,900,000.00 Share Capital 45,674,176.00 740,100,000.00 Reserves 914,264.00 (6,200,000.00) Retained Eamings Other Equity Convertible Equity 11,706,794.00 485,800,000.00 0.00 0.00 0.00 0.00 SE Held Sale 0.00 0.00 Outside Equity 2,300,000.00 Total Equity 58,295,234.00 1,222,000,000.00 Required (Show the workings/ calculations): (a) Using the financial information provided above, calculate each of the following financial ratios for ACF and ABC (Use closing balance to calculate and round up numbers to 2 decimal places 0.xx or x%). FY 2020 ACF ABC Return on Equity (ROE) Net Profit Margin Asset Turnover Capital Structure Leverage (b) Using the financial information provided above, prepare a common-size income statemen for both companies (Use closing balance to calculate and round up numbers to 2 decimal place: 0.xx or x%). (c) Decompose ROE using the traditional approach. What drives the difference in ROE between ACF and ABC? (d) Comment on ACF and ABC's EBITDA margin and Operating expense/Sales ratios. How did strategic decisions made by these companies affect these ratios?
Financial Reporting, Financial Statement Analysis and Valuation
8th Edition
ISBN:9781285190907
Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Chapter10: Forecasting Financial Statement
Section: Chapter Questions
Problem 11PC
Related questions
Question
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps with 4 images
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Financial Reporting, Financial Statement Analysis…
Finance
ISBN:
9781285190907
Author:
James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Publisher:
Cengage Learning
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Financial Reporting, Financial Statement Analysis…
Finance
ISBN:
9781285190907
Author:
James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Publisher:
Cengage Learning
Managerial Accounting
Accounting
ISBN:
9781337912020
Author:
Carl Warren, Ph.d. Cma William B. Tayler
Publisher:
South-Western College Pub
Cornerstones of Cost Management (Cornerstones Ser…
Accounting
ISBN:
9781305970663
Author:
Don R. Hansen, Maryanne M. Mowen
Publisher:
Cengage Learning
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning