1. Calculate EVERGREEN CORP.s annual growth rate for sales, assets and operating profit in 2018 and 2019. What are the underlying drivers of these growth rates?

2. Calculate EVERGREEN CORP.s financial ratios for 2018 and 2019, including a full Du Pont analysis.

3. Calculate EVERGREEN CORP.s Z-score for 2018 and 2019.

4. Based on your calculations, what are EVERGREEN CORP.s key strengths and weaknesses?

5. What recommendations would you make to the management of EVERGREEN CORP. to improve its performance? (be specific and make use of all the data available)

Exhibits Balance Sheet 2017 m 2018 m 2019 Em 180.0 216.0 259.2 90.0 30.0 60.0 360.0 108.0 36.0 72.0 432.0 129.6 43.2 86.4 518.4 ASSETS Fixed assets Property, plant and equipment Current assets Inventory Trade and other receivables Cash and cash equivalents Total assets LIABILITIES Long-term liabilities Long term debt (8% bonds maturing in 2027) Current liabilities Bank overdrafts and borrowings Trade and other payables Total liabilities EQUITY Share capital (1 million shares outstanding) Total liabilities + equity 75.0 75.0 75.0 87.3 36.0 198.3 142.0 43.2 260.2 214.4 51.8 341.2 161.7 360.0 171.8 432.0 177.2 518.4 Market price per share 93.6 61 21 161.7 360.0 171.8 432.0 177.2 518.4 Share capital (1 million shares outstanding) Total liabilities + equity Market price per share 93.6 61 21 Income Statement Sales revenue Cost of sales Administrative expenses Operating profit Interest expense Profit before taxation Taxation (40%) Net income 2017 2018 2019 m Em Em 100.0 120.0 144.0 (55.0) (66.0) (79.2) (15.0) (18.0) (21.6) 30.0 36.0 43.2 (10.5) (19.095) (34.391) 19.5 16.905 8.809 7.8 6.762 3.524 11.7 10.143 5.285 Exhibits Balance Sheet 2017 m 2018 m 2019 Em 180.0 216.0 259.2 90.0 30.0 60.0 360.0 108.0 36.0 72.0 432.0 129.6 43.2 86.4 518.4 ASSETS Fixed assets Property, plant and equipment Current assets Inventory Trade and other receivables Cash and cash equivalents Total assets LIABILITIES Long-term liabilities Long term debt (8% bonds maturing in 2027) Current liabilities Bank overdrafts and borrowings Trade and other payables Total liabilities EQUITY Share capital (1 million shares outstanding) Total liabilities + equity 75.0 75.0 75.0 87.3 36.0 198.3 142.0 43.2 260.2 214.4 51.8 341.2 161.7 360.0 171.8 432.0 177.2 518.4 Market price per share 93.6 61 21 161.7 360.0 171.8 432.0 177.2 518.4 Share capital (1 million shares outstanding) Total liabilities + equity Market price per share 93.6 61 21 Income Statement Sales revenue Cost of sales Administrative expenses Operating profit Interest expense Profit before taxation Taxation (40%) Net income 2017 2018 2019 m Em Em 100.0 120.0 144.0 (55.0) (66.0) (79.2) (15.0) (18.0) (21.6) 30.0 36.0 43.2 (10.5) (19.095) (34.391) 19.5 16.905 8.809 7.8 6.762 3.524 11.7 10.143 5.285