Question
Below is the balance sheet dated 31.12.2017 of Ak-Kim Kimya A.. and the income statement for 2017. Additional Information: 40% of sales are credit sales.
Below is the balance sheet dated 31.12.2017 of Ak-Kim Kimya A.. and the income statement for 2017. Additional Information: 40% of sales are credit sales. The term given to buyers is 60 days on average. At the beginning of the period Trade Receivable Amount is 2.900.000 TL. and the Beginning Product Stocks are 3,400,000 TL. It is also known that the chemical industry has an average stock turnover of 5 and an average return on equity of around 20%. According to these data, the enterprise; a) Short-term debt solvency b) Ability to collect receivables c) The ability of stocks to run d) Dependence on stocks, e) Evaluate the Interest Coverage Power. f) Calculate the Activity (Activity) duration of the business. g) Calculate the operating profitability ratio. h) Evaluate whether the company uses its assets effectively. i) Provide information about how the company finances its fixed assets. j) Evaluate the result by performing Dupont Analysis. NOTE: RATE ANALYSIS TECHNIQUE WILL BE USED IN ANSWERING EACH CHOICE
ASSETS |
| RESOURCES |
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Total current assets | 8.500.000 | Total short-term debt | 5.000.000 |
Liquid assets | 450.000 |
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Personal assets | 800.000 |
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Trade receivables | 2.500.000 |
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Other receivables | 500.000 |
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Stocks | 3.500.000 | Long-term debts | 6.000.000 |
- Raw metarial stock | 200.000 | Shareholders equity | 22.500.000 |
- Semi-finished stock | 100.000 | Capital receipts | 12.000.000 |
- Finished stock | 3.200.000 | Profit reserves | 5.000.000 |
Prepaid expenses for next months | 450.000 | Capital reserves | 2.500.000 |
Other current assets | 300.000 | Period net profit | 3.000.000 |
Total fixed assets | 25.000.000 |
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Total assets | 33.500.000 | Resource total | 33.500.000 |
Year 2017 Income Statement |
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Net sales | 25.000.000 |
|
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Cost of sales | 19.000.000 |
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Operating expenses | 3.100.000 |
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Financial expenses | 800.000 |
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Term profit | 3.800.000 |
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Net profit for the period | 3.000.000 |
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