A. As the attached financial statement and cash flow are the following calculation is correct?
Return on Assets = net income / average total assets = 0.01
Asset Turnover = net sales / average total assets = 0.08
Profit Margin Revisited = profit merging * Asset Turnover = Return on Assets = 0.12
B. make a summary report and explain the following in (Reporting and Analyzing Long-Lived Assets)?
ASSETS Non-Current Assets Property, Plant and Equipment Long-term Prepayments Right-of-Use Assets Intangible Assets and Goodwill Biological Assets Investments in Associate and Joint Venture Equity Investment Derivative Financial Instruments Deferred Tax Assets 20,696,092 586,493 417,598 1,120,541 1,475,861 87,575 21,112,904 606,939 470,269 1,217,642 1,392,079 89,623 129,734 142 35,517 25,054,849 5 5 2,194 48,793 24,435,147 Current Assets Inventories Biological Assets Trade Receivables, Prepayments and Other Receivables Derivative Financial Instruments Equity Investment Cash and Bank Balances 4,705,364 90,195 1,936,341 54,047 5 4,393,894 123,532 2,404,577 3,487 54,528 572,743 7,552,761 31,987,908 503,510 7,289,457 32,344,306 6 TOTAL ASSETS EQUITY AND LIABILITIES Share Capital Statutory Reserve Treasury Shares Other Reserves Retained Earnings Equity Attributable to Equity Holders of the Company Non-Controlling Interests TOTAL EQUITY Non-Current Liabilities Loans and Borrowings Lease Liabilities Employee Retirement Benefits Derivative Financial Instruments Deferred Tax Liabilities 10,000,000 2,428,915 (877,284) (596,153) 4,905,784 15,861,262 505,256 16,366,518 10,000,000 2,428,915 (906,594) (443,871) 4,608,458 15,686,908 546,771 16,233,679 7 7,568,302 316,591 964,562 6,873 125,662 8,981,990 10,088,955 330,980 909,353 3,757 102,139 11,435,184 7 Current Liabilities Bank Overdrafts Loans and Borrowings Lease Liabilities Zakat Income Tax Payable Trade and Other Payables Derivative Financial Instruments 62,630 2.715,122 80,881 392,269 28,711 3,345,944 13,843 6,639,400 15,621,390 31,987,908 137,512 1,026,013 94,509 371,993 26,311 3,014,834 4,271 4,675,443 16.110,627 32,344,306 TOTAL LIABILITIES TOTAL EQUITY AND LIABILITIES Notes (Unaudited) SAR '000 (Unaudited) SAR '000 1,289,557 1.602,470 1,209,290 20,446 76,739 51,327 241,321 4,970 111,820 7.736 266,730 70,366 2,028 39,361 24,962 3,416,653 1,192,542 13,859 82,383 39,819 265,452 6,212 89,836 12,690 362.941 71,357 (1.543) 40,192 18.117 3,796,327 5 1,685,473 (1,423,968) (415,307) 300,447 146,645 (56,745) (23,732) 3,482,821 643,606 (1,224,917) (536,840) 378,496 (739,655) (53,130) (69,317) 2,934,225 CASH FLOWS FROM OPERATING ACTIVITIES Profit for the period Adjustments for non-cash items: Depreciation of Property, Plant and Equipment Amortisation of Long-term Prepayments Depreciation of Right-of-Use Assets Amortisation of Intangible Assets Depreciation of Biological Assets Loss Arising from Changes in Fair Value less Cost to Sell of Crops Provision for Employee Retirement Benefits Share Based Payment Expense Finance Cost, net Other Expenses, net Share of Results of Associates and Joint Venture Zakat Income Tax Changes in working capital Inventories Biological Assets Trade Receivables, Prepayments and Other Receivables Trade and Other Payables Cash Flow Generated from/(Used in) Working Capital Employee Retirement Benefits Paid Zakat and Income Tax Paid Net Cash Generated from Operating Activities CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from Sale of Equity Investment Dividend from Equity Investment Purchase of Additional Stake in a Subsidiary Proceeds from Redemption of Time Deposit Additions to Property, Plant and Equipment Proceeds from the Disposal of Property, Plant and Equipment Additions to Intangible Assets Additions to Biological Assets Appreciation of Biological Assets Proceeds from the Disposal of Biological Assets Net Cash Used in Investing Activities CASH FLOWS FROM FINANCING ACTIVITIES Decrease in Loans, net Finance Cost Paid Dividend Paid Purchase of Treasury Shares Settlement of Treasury Shares Transactions with Non-Controlling Interests Lease Payments Directors' Remuneration Net Cash Used in Financing Activities Net Change in Cash and Cash Equivalents Cash and Cash Equivalents as at 1 January Effect of Movements in Exchange Rates on Cash and Cash Equivalents Cash and Cash Equivalents as at 30 September 5 81,088 300 (150,000) 180 1 (656,356) 21,973 (79,385) (89,604) (514.966) 186,436 (1,200,514) 585,000 (602,953) 70,415 (90,223) (95,169) (440.231) 170,129 (402,852) (847,409) (258,206) (978,171) 27,238 (6.407) (70,260) (5,185) (2,138,400) 143,907 365,998 (541,170) (353,639) (847,883) (253,157) 91,539 (22.728) (94,175) (5,767) (2,026,980) 504,393 338,435 208 510,113 10 (445) 842,383 July - September 2021 (Unaudited) SAR '000 July - September 2020 (Unaudited) SAR '000 January - September 2021 (Unaudited) SAR '000 January - September 2020 (Unaudited) SAR '000 Notes Revenue Cost of Sales Gross Profit Selling and Distribution Expenses General and Administration Expenses Other Expenses, net Impairment (Loss)/Reversal on Financial Assets Operating Profit Finance Cost, net Share of Results of Associate and Joint Venture Profit before Zakat and Income Tax Zakat Income Tax Profit for the period 3,941,730 (2,666,017) 1,275,713 (646,441) (85,095) (19,247) (6,290) 518,640 (84,617) (543) 433,480 (11,033) (11,599) 410,848 3,863,079 (2,348,379) 1,514,700 (642,003) (83,956) (39,514) 960 750,187 (117,764) 907 633,330 (11,693) (6,499) 615,138 11,592,312 (7,725,755) 3,866,557 (1,885,319) (287,363) (70,366) (871) 1,622,638 (266,730) (2,028) 1,353,880 (39,361) (24,962) 1,289,557 11,537,363 (7,234,285) 4,303,078 (1,886,530) (288,893) (71,177) (34,301) 2,022,177 (362,941) 1,543 1,660,779 (40,192) (18,117) 1,602,470 5 Profit /(Loss) for the period attributable to Shareholders of the Company Non-Controlling Interests 409,087 1.761 410,848 621.52 (6,382) 615,138 1,277,012 12,545 1,289,557 1,648,457 (45,987) 1,602,470 Earnings per share (SAR), based on Profit for the period attributable to Shareholders of the Company -Basic - Diluted 8 0.42 0.63 1.30 1.68 8 0.41 0.62 1.28 1.65 1 2 2 - July - September 2021 Profitability Ratios EPS = net income / average outstanding common shares = net incom 409,087 / average outstanding common shares = 981735 Basic = 0.42 Diluted = 0.41 Liquidity ratios = Current Assets / Current Liabilities Current Assets = 572,743 Current Liabilities = 13,843 Liquidity ratios 41.37419634 3 Solvency ratios = total Liabilities / total Assets total Liabilities = 6,639,400 total Assets = 31,987,908 Solvency ratios = 0.21 A Liabilities to equity = total liabilities / by stockholders' equity total Liabilities = 6,639,400 stockholders' equity = 16,366,518 Liabilities to equity = 0.41 4 Free cash flow = net cash provided by operation activates - capital expenditures - cash dividend net cash provided by operation activates = 3,416,653 capital expenditures = 3,482,821 cash dividend = 1,200,514 FINANCING ACTIVITIES 2,138,400 Free cash flow= 510,113 5 Income Statement A gross profit = Revenue - Cost of Sales = 3941730 - 2666017= 1,275, 713 B Income from operations = gross profit - Operating expenses = 1275713 - 757073= 518,640 C Profit before Zakat and Income Tax = 433,480 D net incom = 410,848 E Gross Profit Rate Gross Profit / Net sales = 1,275,713 / 1,275,713 .= F Profit Margin Net income / net sales = 409,087 / 1,275,713 .= 32% 6 Reporting and Analyzing Inventory A Average inventory Beginning Inventory + Ending Inventory / Number of months in the accounting period = 258787 B Inventory Turnover = Cost of Goods Sold/ Average Inventory = 2,666,017 / 258786.56 .= C Days in Inventory = 365 /Inventory Turnover Ratio = 365 7 10.30 .= 35.4 7 Reporting and Analyzing Receivables Accounts Receivable Turnover = Net Credit Sales /Average Net Accounts Receivable = 2,585,296 Average Collection Period =365(Accounts Receivable Turnover) = 0.00014 Reporting and Analyzing Long-Lived Assets Return on Assets = net income / average total assets = 410848 / 32166107 = Asset Turnover = net sales / average total assets = 2666017/ 32166107 = Profit Margin Revisited = profit merging * Asset Turnover = Return on Assets = profit merging = net income / net sales 0.15 100% 10.30 B 8 A A 0.01 B 0.08 C 0.012 ASSETS Non-Current Assets Property, Plant and Equipment Long-term Prepayments Right-of-Use Assets Intangible Assets and Goodwill Biological Assets Investments in Associate and Joint Venture Equity Investment Derivative Financial Instruments Deferred Tax Assets 20,696,092 586,493 417,598 1,120,541 1,475,861 87,575 21,112,904 606,939 470,269 1,217,642 1,392,079 89,623 129,734 142 35,517 25,054,849 5 5 2,194 48,793 24,435,147 Current Assets Inventories Biological Assets Trade Receivables, Prepayments and Other Receivables Derivative Financial Instruments Equity Investment Cash and Bank Balances 4,705,364 90,195 1,936,341 54,047 5 4,393,894 123,532 2,404,577 3,487 54,528 572,743 7,552,761 31,987,908 503,510 7,289,457 32,344,306 6 TOTAL ASSETS EQUITY AND LIABILITIES Share Capital Statutory Reserve Treasury Shares Other Reserves Retained Earnings Equity Attributable to Equity Holders of the Company Non-Controlling Interests TOTAL EQUITY Non-Current Liabilities Loans and Borrowings Lease Liabilities Employee Retirement Benefits Derivative Financial Instruments Deferred Tax Liabilities 10,000,000 2,428,915 (877,284) (596,153) 4,905,784 15,861,262 505,256 16,366,518 10,000,000 2,428,915 (906,594) (443,871) 4,608,458 15,686,908 546,771 16,233,679 7 7,568,302 316,591 964,562 6,873 125,662 8,981,990 10,088,955 330,980 909,353 3,757 102,139 11,435,184 7 Current Liabilities Bank Overdrafts Loans and Borrowings Lease Liabilities Zakat Income Tax Payable Trade and Other Payables Derivative Financial Instruments 62,630 2.715,122 80,881 392,269 28,711 3,345,944 13,843 6,639,400 15,621,390 31,987,908 137,512 1,026,013 94,509 371,993 26,311 3,014,834 4,271 4,675,443 16.110,627 32,344,306 TOTAL LIABILITIES TOTAL EQUITY AND LIABILITIES Notes (Unaudited) SAR '000 (Unaudited) SAR '000 1,289,557 1.602,470 1,209,290 20,446 76,739 51,327 241,321 4,970 111,820 7.736 266,730 70,366 2,028 39,361 24,962 3,416,653 1,192,542 13,859 82,383 39,819 265,452 6,212 89,836 12,690 362.941 71,357 (1.543) 40,192 18.117 3,796,327 5 1,685,473 (1,423,968) (415,307) 300,447 146,645 (56,745) (23,732) 3,482,821 643,606 (1,224,917) (536,840) 378,496 (739,655) (53,130) (69,317) 2,934,225 CASH FLOWS FROM OPERATING ACTIVITIES Profit for the period Adjustments for non-cash items: Depreciation of Property, Plant and Equipment Amortisation of Long-term Prepayments Depreciation of Right-of-Use Assets Amortisation of Intangible Assets Depreciation of Biological Assets Loss Arising from Changes in Fair Value less Cost to Sell of Crops Provision for Employee Retirement Benefits Share Based Payment Expense Finance Cost, net Other Expenses, net Share of Results of Associates and Joint Venture Zakat Income Tax Changes in working capital Inventories Biological Assets Trade Receivables, Prepayments and Other Receivables Trade and Other Payables Cash Flow Generated from/(Used in) Working Capital Employee Retirement Benefits Paid Zakat and Income Tax Paid Net Cash Generated from Operating Activities CASH FLOWS FROM INVESTING ACTIVITIES Proceeds from Sale of Equity Investment Dividend from Equity Investment Purchase of Additional Stake in a Subsidiary Proceeds from Redemption of Time Deposit Additions to Property, Plant and Equipment Proceeds from the Disposal of Property, Plant and Equipment Additions to Intangible Assets Additions to Biological Assets Appreciation of Biological Assets Proceeds from the Disposal of Biological Assets Net Cash Used in Investing Activities CASH FLOWS FROM FINANCING ACTIVITIES Decrease in Loans, net Finance Cost Paid Dividend Paid Purchase of Treasury Shares Settlement of Treasury Shares Transactions with Non-Controlling Interests Lease Payments Directors' Remuneration Net Cash Used in Financing Activities Net Change in Cash and Cash Equivalents Cash and Cash Equivalents as at 1 January Effect of Movements in Exchange Rates on Cash and Cash Equivalents Cash and Cash Equivalents as at 30 September 5 81,088 300 (150,000) 180 1 (656,356) 21,973 (79,385) (89,604) (514.966) 186,436 (1,200,514) 585,000 (602,953) 70,415 (90,223) (95,169) (440.231) 170,129 (402,852) (847,409) (258,206) (978,171) 27,238 (6.407) (70,260) (5,185) (2,138,400) 143,907 365,998 (541,170) (353,639) (847,883) (253,157) 91,539 (22.728) (94,175) (5,767) (2,026,980) 504,393 338,435 208 510,113 10 (445) 842,383 July - September 2021 (Unaudited) SAR '000 July - September 2020 (Unaudited) SAR '000 January - September 2021 (Unaudited) SAR '000 January - September 2020 (Unaudited) SAR '000 Notes Revenue Cost of Sales Gross Profit Selling and Distribution Expenses General and Administration Expenses Other Expenses, net Impairment (Loss)/Reversal on Financial Assets Operating Profit Finance Cost, net Share of Results of Associate and Joint Venture Profit before Zakat and Income Tax Zakat Income Tax Profit for the period 3,941,730 (2,666,017) 1,275,713 (646,441) (85,095) (19,247) (6,290) 518,640 (84,617) (543) 433,480 (11,033) (11,599) 410,848 3,863,079 (2,348,379) 1,514,700 (642,003) (83,956) (39,514) 960 750,187 (117,764) 907 633,330 (11,693) (6,499) 615,138 11,592,312 (7,725,755) 3,866,557 (1,885,319) (287,363) (70,366) (871) 1,622,638 (266,730) (2,028) 1,353,880 (39,361) (24,962) 1,289,557 11,537,363 (7,234,285) 4,303,078 (1,886,530) (288,893) (71,177) (34,301) 2,022,177 (362,941) 1,543 1,660,779 (40,192) (18,117) 1,602,470 5 Profit /(Loss) for the period attributable to Shareholders of the Company Non-Controlling Interests 409,087 1.761 410,848 621.52 (6,382) 615,138 1,277,012 12,545 1,289,557 1,648,457 (45,987) 1,602,470 Earnings per share (SAR), based on Profit for the period attributable to Shareholders of the Company -Basic - Diluted 8 0.42 0.63 1.30 1.68 8 0.41 0.62 1.28 1.65 1 2 2 - July - September 2021 Profitability Ratios EPS = net income / average outstanding common shares = net incom 409,087 / average outstanding common shares = 981735 Basic = 0.42 Diluted = 0.41 Liquidity ratios = Current Assets / Current Liabilities Current Assets = 572,743 Current Liabilities = 13,843 Liquidity ratios 41.37419634 3 Solvency ratios = total Liabilities / total Assets total Liabilities = 6,639,400 total Assets = 31,987,908 Solvency ratios = 0.21 A Liabilities to equity = total liabilities / by stockholders' equity total Liabilities = 6,639,400 stockholders' equity = 16,366,518 Liabilities to equity = 0.41 4 Free cash flow = net cash provided by operation activates - capital expenditures - cash dividend net cash provided by operation activates = 3,416,653 capital expenditures = 3,482,821 cash dividend = 1,200,514 FINANCING ACTIVITIES 2,138,400 Free cash flow= 510,113 5 Income Statement A gross profit = Revenue - Cost of Sales = 3941730 - 2666017= 1,275, 713 B Income from operations = gross profit - Operating expenses = 1275713 - 757073= 518,640 C Profit before Zakat and Income Tax = 433,480 D net incom = 410,848 E Gross Profit Rate Gross Profit / Net sales = 1,275,713 / 1,275,713 .= F Profit Margin Net income / net sales = 409,087 / 1,275,713 .= 32% 6 Reporting and Analyzing Inventory A Average inventory Beginning Inventory + Ending Inventory / Number of months in the accounting period = 258787 B Inventory Turnover = Cost of Goods Sold/ Average Inventory = 2,666,017 / 258786.56 .= C Days in Inventory = 365 /Inventory Turnover Ratio = 365 7 10.30 .= 35.4 7 Reporting and Analyzing Receivables Accounts Receivable Turnover = Net Credit Sales /Average Net Accounts Receivable = 2,585,296 Average Collection Period =365(Accounts Receivable Turnover) = 0.00014 Reporting and Analyzing Long-Lived Assets Return on Assets = net income / average total assets = 410848 / 32166107 = Asset Turnover = net sales / average total assets = 2666017/ 32166107 = Profit Margin Revisited = profit merging * Asset Turnover = Return on Assets = profit merging = net income / net sales 0.15 100% 10.30 B 8 A A 0.01 B 0.08 C 0.012
