If the same trend of sales and growth rate continues in the year 2006, what financial problems
Question:
If the same trend of sales and growth rate continues in the year 2006, what financial problems are likely to be faced by the corporation?
Star Semiconductor Corporation Limited (SSCL) is a reputed manufacturer of semiconductors and related products. The balance sheet and income statement for the year ended 31 March 2004 and 2005 shows rapid progress made by the company in various areas. The year 2005 resulted in some substantial changes in the working capital position of the company.
Star Semiconductor Corporation Limited Summarised income statement for the year ending 31 March For the year ended 31 March 2005 31 March 2004 Net sales 4,36,370 3,27,580 Operating expenses and costs:
Cost of goods sold (COGS) 3,08,000 2,30,000 General administrative expenses 62,500 49,500 Salaries of the employees 20,000 15,000 Total operating expenses 3,90,500 2,94,800 Profit from operation 45,870 32,780 Less: Income tax (45%) 20,640 14,750 Net income 25,230 18,030
Step by Step Answer:
Fundamentals Of Accounting And Financial Analysis
ISBN: 9788131776070
1st Edition
Authors: Anil Chowdhury