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Posted on Sep 10, 2024

A. Group project: (20 Marks) In next sheets, you have the income statement and financial position statement for X group (2017 and 2018), You are

A. Group project: (20 Marks) In next sheets, you have the income statement and financial position statement for X group (2017 and 2018), You are required to submit your report about the group performance with considering the following points: 1- Horizontal analysis. Only 2018 2- Vertical analysis. Only 2018 3- Measure the liquidity, profitability, and solvency. With your comments about each ratio. 7 4-Write your conclusion and recommendation (300 to 400 Words). 8 9 10 Bellow table represents the industry average: 11 Industry average 12 2017 2018 13 Current ratio 14 Acid ratio 1.1 1.1 15 Inventory Turnover 5.61 6.5 16 Inventory Turnover (Days) 17 A/R turnover 7.2 8.5 18 A/R Turnover (Days) 19 20 Profit Margin 9% 9.50% 21 Asset turnover 1 1.51 22 ROA 8.50% 8% 23 ROE 8.60% 8.75% 24 25 Solvency 70% 78% 2.1 2.3 G FY 2017 12/31/2017 2,048.0 2,048.0 1,369.5 1,277.8 91.6 678.5 23.4 507.3 491.9 333.1 158.8 6.7 12 2 X Group 3 4 In Millions of AED except Per Share 5 12 Months Ending 6 Revenue 7 + Sales & Services Revenue 8 - Cost of Revenue 9 + Cost of Goods & Services 10 + Depreciation & Amortization 11 Gross Profit + Other Operating Income 13 - Operating Expenses 14 + Selling, General & Admin 15 + Selling & Marketing 16 + General & Administrative 17 + Research & Development 18 + Depreciation & Amortization 19 + Prov For Doubtful Accts 20 + Other Operating Expense 21 Operating Income (Loss) 22 - Non-Operating (Income) Loss 23 + Interest Expense, Net 24 +Interest Expense 25 - Interest Income 26 + Foreign Exch (Gain) Loss 27 + (Income) Loss from Affiliates 28 + Other Non-Op (Income) Loss 29 Pretax Income (Loss), Adjusted 30 - Abnormal Losses (Gains) 31 + Disposal of Assets 32 + Asset Write-Down 33 Pretax Income (Loss), GAAP 34 - Income Tax Expense (Benefit) 35 Income (Loss) from Cont Ops 36 - Not Extraordinary Losses (Gains) 37 + Discontinued Operations 38 + XO & Accounting Changes 39 Income (Loss) Incl. MI 40 6.1 2.6 194.6 -1.3 10.5 17.0 6.5 1.9 FY 2018 12/31/2018 2,001.3 2,001.3 1,315.2 1,227.5 87.7 686.1 8.8 486.5 461.8 318.8 143.0 7.4 16.4 3.2 -2.3 208.3 1.2 5.1 24.8 19.7 -0.1 0.0 -3.8 207.1 -0.9 -1.1 0.2 208.0 1.5 206.6 0.0 0.0 -13.7 195.9 -8.7 -8.7 SE 204.7 0.3 204.3 0.0 0.0 0.0 204.3 0.0 206.6 AutoSave OFF Data Review Formulas View Tell me Home Insert Draw Page Layout v V == 22 General Calibri (Body) 11 ' ' A & IN Paste % B I U a D1 x fx D E F G ! H FY 2017 FY 2010 1 in Millions of AED except Per Share 2 12 Months Ending 12/31/2017 12/31/2010 3 Total Assets 571.3 4 6928 + Cash, Cash Equivalents & STI 5 - Cash & Cash Equivalents 8928 5713 0.0 0.0 6 + ST Investments 7 + Accounts & Notes Rece 334.7 4562 8 - Accounts Receivable, Net 334.7 4562 9 +Notes Receivable, Net 0.0 0.0 10 - Inventores 313.6 338.0 11 + Raw Materials 149.0 178.1 12 + Work In Process 9.9 9.80 13 + Finished Goods 53.2 73.2 14 + Other Inventory 101.4 76.9 15 Other ST Assets 106.1 118.5 16 - Prepaid Expenses 39.5 44.1 17 + Derivative & Hedging Assets 0.0 0.0 18 Misc ST Assets 66.6 74.4 19 Total Current Assets 1,4472 1,484.0 20 Property, Plant & Equip, Net 1.121.6 1,105.9 21 - Property, Plant & Equip 1,983.1 2,055.3 22 - Accumulated Depreciation 861.5 949.4 23 +LT Investments & Receivables 0.0 0.0 24 +LT Investments 0.0 25 + Other LT Assets 374.1 373.6 26 - Total Intangible Assets 366.3 361.9 * Goodwill 275.9 275.9 28 + Other Infangible Assets 90.4 85.9 29 + Derivative & Hedging Assets 0.0 7.6 30 + Investments in Afitos 0.0 0.0 31 + Misc LT Assets 7.8 42 32 Total Noncurrent Assets 1,495.7 1,479.5 33 Total Assets 2,942.9 2,963.5 34 Liabilities & Shareholders' Equity 35 Payables & Accruals 428.4 417.5 36 + Accounts Payable 154.9 134.3 37 + Other Payables & Accruals 273,5 2832 38 + ST Debt 314.0 340.1 39 ST Borowings 314.0 340.1 40 + ST Capital Leases 0.0 0.0 + Other ST Liabetes 0.0 42 Deferred Revenue 0.0 0.0 43 + Derivatives & Hedging 0.0 0.0 + MS ST Liabilities 0.0 0.0 Instructions Income stat Cover page Balance Sheet + MacE AutoSave OFF Group Project - ACC 482 pc Home Insert Draw Page Layout Formulas Data Review View Tell me X Calibri (Body) v 11 ' General Paste B I U av . v + D1 fx B D E G H 1 374.1 366.3 275.9 90.4 0.0 0.0 7.8 1,495.7 2,942.9 UU 373.6 361.9 275.9 859 7.6 0.0 4.2 1,479.5 2,963.5 428.4 24 +LT Investments 25 + Other LT Assets 26 + Total Intangible Assets 27 - Goodwill 28 + Other Intangible Assets 29 + Derivative & Hedging Assets 30 + Investments in Affiliates 31 + Misc LT Assets 32 Total Noncurrent Assets 33 Total Assets 34 Llabilities & Shareholders' Equity 35 + Payables & Accruals 36 + Accounts Payable 37 Other Payables & Accruals 38 + ST Debt 39 + ST Borrowings 40 + ST Capital Leases 41 + Other ST Liabilities 42 -Deferred Revenue 43 + Derivatives & Hedging 44 + Misc ST Liabilities 45 Total Current Liabilities 46 +LT Debt 47 +LT Borrowings 48 +LT Capital Leases 49 + Other LT Liabilities 50 + Accrued Liabilities 51 + Pension Liabilities 52 + Deferred Revenue 53 + Deferred Tax Liabilities 54 + Derivatives & Hedging 55 + Misc LT Liabilities 56 Total Noncurrent Liabilities 57 Total Liabilities 58 + Preferred Equity and Hybrid Capital 59 + Share Capital & APIC 60 - Treasury Stock 61 + Retained Eamings 62 Other Equity 63 Equity Before Minority interest 64 + Minority Non Controlling Interest 65 Total Equity 66 Total Liabilities & Equity 67 154.9 2735 314.0 3140 0.0 0.0 0.0 0.0 0.0 742.5 278.9 278.9 0.0 75.0 0.0 75.0 0.01 0.0 0.0 0.0 353.9 1,096.4 0.0 600.0 0.0 1,261.3 48.48 1,812.9 33.6 1,846.5 2.942.9 417.5 134.3 2832 340.1 340.1 0.0 0.0 0.0 0.0 0.0 757.7 179.9 179.9 0.0 74.2 0.0 74.2 0.0 0.0 0.0 254.1 1,011.8 0.0 600.0 0.0 1,3818 -59.76 1.922.1 29.6 1,951.7 2,963.5 4 Cover page Instructions Income stat. Balance Sheet + A. Group project: (20 Marks) In next sheets, you have the income statement and financial position statement for X group (2017 and 2018), You are required to submit your report about the group performance with considering the following points: 1- Horizontal analysis. Only 2018 2- Vertical analysis. Only 2018 3- Measure the liquidity, profitability, and solvency. With your comments about each ratio. 7 4-Write your conclusion and recommendation (300 to 400 Words). 8 9 10 Bellow table represents the industry average: 11 Industry average 12 2017 2018 13 Current ratio 14 Acid ratio 1.1 1.1 15 Inventory Turnover 5.61 6.5 16 Inventory Turnover (Days) 17 A/R turnover 7.2 8.5 18 A/R Turnover (Days) 19 20 Profit Margin 9% 9.50% 21 Asset turnover 1 1.51 22 ROA 8.50% 8% 23 ROE 8.60% 8.75% 24 25 Solvency 70% 78% 2.1 2.3 G FY 2017 12/31/2017 2,048.0 2,048.0 1,369.5 1,277.8 91.6 678.5 23.4 507.3 491.9 333.1 158.8 6.7 12 2 X Group 3 4 In Millions of AED except Per Share 5 12 Months Ending 6 Revenue 7 + Sales & Services Revenue 8 - Cost of Revenue 9 + Cost of Goods & Services 10 + Depreciation & Amortization 11 Gross Profit + Other Operating Income 13 - Operating Expenses 14 + Selling, General & Admin 15 + Selling & Marketing 16 + General & Administrative 17 + Research & Development 18 + Depreciation & Amortization 19 + Prov For Doubtful Accts 20 + Other Operating Expense 21 Operating Income (Loss) 22 - Non-Operating (Income) Loss 23 + Interest Expense, Net 24 +Interest Expense 25 - Interest Income 26 + Foreign Exch (Gain) Loss 27 + (Income) Loss from Affiliates 28 + Other Non-Op (Income) Loss 29 Pretax Income (Loss), Adjusted 30 - Abnormal Losses (Gains) 31 + Disposal of Assets 32 + Asset Write-Down 33 Pretax Income (Loss), GAAP 34 - Income Tax Expense (Benefit) 35 Income (Loss) from Cont Ops 36 - Not Extraordinary Losses (Gains) 37 + Discontinued Operations 38 + XO & Accounting Changes 39 Income (Loss) Incl. MI 40 6.1 2.6 194.6 -1.3 10.5 17.0 6.5 1.9 FY 2018 12/31/2018 2,001.3 2,001.3 1,315.2 1,227.5 87.7 686.1 8.8 486.5 461.8 318.8 143.0 7.4 16.4 3.2 -2.3 208.3 1.2 5.1 24.8 19.7 -0.1 0.0 -3.8 207.1 -0.9 -1.1 0.2 208.0 1.5 206.6 0.0 0.0 -13.7 195.9 -8.7 -8.7 SE 204.7 0.3 204.3 0.0 0.0 0.0 204.3 0.0 206.6 AutoSave OFF Data Review Formulas View Tell me Home Insert Draw Page Layout v V == 22 General Calibri (Body) 11 ' ' A & IN Paste % B I U a D1 x fx D E F G ! H FY 2017 FY 2010 1 in Millions of AED except Per Share 2 12 Months Ending 12/31/2017 12/31/2010 3 Total Assets 571.3 4 6928 + Cash, Cash Equivalents & STI 5 - Cash & Cash Equivalents 8928 5713 0.0 0.0 6 + ST Investments 7 + Accounts & Notes Rece 334.7 4562 8 - Accounts Receivable, Net 334.7 4562 9 +Notes Receivable, Net 0.0 0.0 10 - Inventores 313.6 338.0 11 + Raw Materials 149.0 178.1 12 + Work In Process 9.9 9.80 13 + Finished Goods 53.2 73.2 14 + Other Inventory 101.4 76.9 15 Other ST Assets 106.1 118.5 16 - Prepaid Expenses 39.5 44.1 17 + Derivative & Hedging Assets 0.0 0.0 18 Misc ST Assets 66.6 74.4 19 Total Current Assets 1,4472 1,484.0 20 Property, Plant & Equip, Net 1.121.6 1,105.9 21 - Property, Plant & Equip 1,983.1 2,055.3 22 - Accumulated Depreciation 861.5 949.4 23 +LT Investments & Receivables 0.0 0.0 24 +LT Investments 0.0 25 + Other LT Assets 374.1 373.6 26 - Total Intangible Assets 366.3 361.9 * Goodwill 275.9 275.9 28 + Other Infangible Assets 90.4 85.9 29 + Derivative & Hedging Assets 0.0 7.6 30 + Investments in Afitos 0.0 0.0 31 + Misc LT Assets 7.8 42 32 Total Noncurrent Assets 1,495.7 1,479.5 33 Total Assets 2,942.9 2,963.5 34 Liabilities & Shareholders' Equity 35 Payables & Accruals 428.4 417.5 36 + Accounts Payable 154.9 134.3 37 + Other Payables & Accruals 273,5 2832 38 + ST Debt 314.0 340.1 39 ST Borowings 314.0 340.1 40 + ST Capital Leases 0.0 0.0 + Other ST Liabetes 0.0 42 Deferred Revenue 0.0 0.0 43 + Derivatives & Hedging 0.0 0.0 + MS ST Liabilities 0.0 0.0 Instructions Income stat Cover page Balance Sheet + MacE AutoSave OFF Group Project - ACC 482 pc Home Insert Draw Page Layout Formulas Data Review View Tell me X Calibri (Body) v 11 ' General Paste B I U av . v + D1 fx B D E G H 1 374.1 366.3 275.9 90.4 0.0 0.0 7.8 1,495.7 2,942.9 UU 373.6 361.9 275.9 859 7.6 0.0 4.2 1,479.5 2,963.5 428.4 24 +LT Investments 25 + Other LT Assets 26 + Total Intangible Assets 27 - Goodwill 28 + Other Intangible Assets 29 + Derivative & Hedging Assets 30 + Investments in Affiliates 31 + Misc LT Assets 32 Total Noncurrent Assets 33 Total Assets 34 Llabilities & Shareholders' Equity 35 + Payables & Accruals 36 + Accounts Payable 37 Other Payables & Accruals 38 + ST Debt 39 + ST Borrowings 40 + ST Capital Leases 41 + Other ST Liabilities 42 -Deferred Revenue 43 + Derivatives & Hedging 44 + Misc ST Liabilities 45 Total Current Liabilities 46 +LT Debt 47 +LT Borrowings 48 +LT Capital Leases 49 + Other LT Liabilities 50 + Accrued Liabilities 51 + Pension Liabilities 52 + Deferred Revenue 53 + Deferred Tax Liabilities 54 + Derivatives & Hedging 55 + Misc LT Liabilities 56 Total Noncurrent Liabilities 57 Total Liabilities 58 + Preferred Equity and Hybrid Capital 59 + Share Capital & APIC 60 - Treasury Stock 61 + Retained Eamings 62 Other Equity 63 Equity Before Minority interest 64 + Minority Non Controlling Interest 65 Total Equity 66 Total Liabilities & Equity 67 154.9 2735 314.0 3140 0.0 0.0 0.0 0.0 0.0 742.5 278.9 278.9 0.0 75.0 0.0 75.0 0.01 0.0 0.0 0.0 353.9 1,096.4 0.0 600.0 0.0 1,261.3 48.48 1,812.9 33.6 1,846.5 2.942.9 417.5 134.3 2832 340.1 340.1 0.0 0.0 0.0 0.0 0.0 757.7 179.9 179.9 0.0 74.2 0.0 74.2 0.0 0.0 0.0 254.1 1,011.8 0.0 600.0 0.0 1,3818 -59.76 1.922.1 29.6 1,951.7 2,963.5 4 Cover page Instructions Income stat. Balance Sheet +