80.2K

Verified Solution

Link Copied!

10:34 Assignment 1.docx Question 3: Read the comparative balance sheet and the income statements of the firm 'Imaginary Computers Limited'. Use the techniques of financial statements analysis as explained in the chapter to do the following: Complete the missing values (titles, formulas and numerical values in the table below. Note that some ratios could not be calculated as relevant data are not available. 2 Comment on the financial strengths and weaknesses of the firm (trends of the ratios and its comparison with industry average) Imaginary Computers Ltd. Balance sheet as at 31 December ( 000) 2001 2002 2003 153 75 8.5 Reserves and surplus 6.7 5.7 74 Long-term debt 3.242 Notes payable - Short term 5. 65. 27.2 3.4 6.5 5.6 Total 25.1 28 1929 Net findes 174 218 26.1 26012 Receivables 2.52.829 16 2727 Total 251 21 329 Income statement for the year ending 31 December (5000 298 574 1452458 Gross Pro 31 7116 Operating Expenses 174270 Operating pro 154546 Nooperating surplus deficit 020104 EBIT 1946 interest 1009201 Profit before tar 315 3.0 IT Net Pro 1 SBGESBE 106 - 10:34 Assignment 1.docx Income statement for the year ending 31 December (5000) blog 2003 INHO 574 poods sold 245 252 458 Gros Pro S L Operating AS ng saplos delic 02 03 04 ERIT LE LO 0920 Profit before tas SetPro OS OS LI Retaine carnings 2319 AASWC Ratio Formula 2007.2002 2003 Industry Current ratio 10.541.. * Pro 18 pesos 0.15 1.091.13 Der wity to 10:34 Assignment 1.docx TV 3 19 Retained varia Answer: Radio Prule 2007 2006 2005 Industry 205 3 H ING 0.18 0:25 rarios P ales 0.000 ! Page 1 of 4

Answer & Explanation Solved by verified expert

See Answer