Analysis project

Company Background:

Mother Nature Products operates a natural product manufacturing and sales business. The Company's primary activity is selling natural and homeopathic products, as well as research and development of botanical-based products.

Projects not prepared exactly as instructed may not be accepted or graded.

Save your Excel file as "Mother Nature Products Lastname Firstname MGT 2100 spring 2020" before submitting. Please submit your Excel file on Moodle no later than 11:59 PM on March 26.

Required:

Calculate the ratios provided using the Excel template and answer the questions based upon the results

of your calculations. Rules for your analysis:

1. You must use the Excel you have been provided, in the format provided. 2. You must use formulas in Excel to perform the calculations. 3. You must work individually on this project.

Marking Breakdown

Ratio calculations /14

ALL ratios are prepared with formulas (11 or 0, no part marks) /11

Analysis: questions are answered correctly, with enough depth and based on analysis performed /20

/ 5 Writing is clear, concise, and free from errors (Yes, you will lose marks for errors in spelling, punctuation, and grammar)

Total /50

Financial Statements of Mother Nature Products

For the years ended November 30, 2018, and 2017

Mother Nature Products Statement of Operations (Expressed in Canadian dollars)

Year ended November 30, 2018

Year ended November 30, 2017 $ $

Sales 416,659 161,223 Cost of goods sold (215,240) (92,961) Gross margin 201,419 68,262

Sales expenses

Salaries and payroll expenses 60,233 18,349 Commissions 32,332 10,139 Travelling costs 7,162 427 Advertising and promotion 35,734 48,418 Other expenses 23,502 4,688 Total sales expenses 158,963 82,021

Administrative costs

Rent

33,760 8,922 Repair and maintenance

5,205 5,099 Office costs

78,777 7,888 Management fees

113,276 72,167 Professional fees

147,009 112,777 Consulting fees

1,976 - Research and development

23,375 - Depreciation

11,529 2,327

Total administrative expenses 414,907 209,180

Finance costs

Interest and bank charges 28,116 13,867 Credit card fees 2,011 662 Total finance costs 30,127 14,529

Net loss (402,578) (237,468)

Mother Nature Products Statement of Changes in Shareholders' Equity (Expressed in Canadian dollars)

Mother Nature Products Statement of Financial Position (Expressed in Canadian dollars)

November 30, November 30, As at 2018 2017

$ $ ASSETS

Current assets

Cash 1,485,020 110,281 Accounts receivable 150,000 75,353 Prepaids 83,980 - Inventory 142,519 90,011 Total current assets 1,861,519 275,675

Non-current assets

Land and building

310,407 320,407 Equipment

4,441 1,801 Other 1,195 1,612 Total non-current assets 316,043 323,820

Total assets 2,177,562 599,465

LIABILITIES

Current liabilities

Accounts payable

- 138,274 Accrued liabilities

405 405 Bank line of credit

163,088 225,527 Bank loans

25,201 61,020

Total current liabilities 188,694 425,226

Non-current liabilities

Other 500 1,302 Total non-current liabilities 500 1,302

Total liabilities 189,194 426,528

SHAREHOLDERS' EQUITY

Common shares

2,772,552 554,513 Preferred shares

153,000 153,000 Deficit (937,154) (534,576)

Total equity 1,988,368 172,937

Total liabilities and shareholders' equity 2,177,562 599,465