1. Evaluate the sales, operating expenses, gross margin, net-profit margin asset, and debt and equity structure, of Briscoe Group Limited and explain trends and changes found using the common-size financial statements.

(10 marks)

2. Using relevant ratios, and other associated information available in the public domain, assess the financial health of Briscoe Group Limited based from the point of view of an investor in share capital.

(8 marks)

3. Assume you are a banker evaluating a loan request from Briscoe Group Limited for $ 100 million. What would be your concerns when making a decision regarding approval or denial of the loan request? Justify.

(Word limit 400)

P.S. use this common-sized income statement and balance sheet to answer these questions, you do not need to the actual figure and you can calculate some ratios and do an analysis and answer the question, if you cannot please let other expert to do.

Briscoe Common size balance sheet as at 26 Jan 2020 and 27 Jan 2019 2019 2020 change Assets: Current Assets Cash and cash equivalents Trade and otherreceivables Inwentories Held for sale assets Derivative financial instruments Total Current Assets -12.43% 0.27% -9.63% 22.11% 0.77% 22.18% 0 0.22% 45.27% 9.68% 0.51% 12.55% 0.78% 0.04% 23.55% 0.78% 0.18% -21.72% 25.19% 0.69% Non-aurrent Assets Property, plant and equipment Intangible assets Right-of use assets Deferred tax Inventment in equity securities Total Non-aurrent Assets Total Assets 13.96% 0.50% 38. 19% 168% 22.12% 76.45% 100% -11.22% -0.19% 38.19% 0.74% -5.79% 2172% 0.94% 27.92% 54.73% 100% 22.92% Liabilities Current liabilities Trade and other payables Lease liabilites Taxation payable Derivative financial instruments Total Current Liabilites 0 11.67% 2.55% 0.70% 0.15% 15.06% -11.26% 2.55% 117% 1.87% 0.12% 0.02% -9.85% 24.92% 0.21% 0.09% Non-Current Liabilties Trade and other payables Lease liabilities Total Non-Current Liabilities Total Liabilities 40.01% 0 0.21% 0.12% 40.01% 40.13% 55.19% 39.92% 25.13% 30.06% 74.87% 44.81% 30.06% -7.41% 0.14% Net Assets Equity Share Capital Cashflow hedgereserve Equity-based remuneration reserve Other reserves Retanied Earnings Total equity 0.18% 16.13% 0.07% 0.30% 7.59% 56.78% 74.87% 8.72% -0.07% 0.12% 9.51% 26.53% 44.81% 1.92% 24.25% 30.06% Briscoe Common-size income statement for the year 2019 and 20:20 2020 100% 61% 39% 1% -15% -11% Sales Reverne Cost of good sold Gross Profit Other operating income Store expenses Administration expenses Earnings before interest and tax Finance income Finance cost Net finance income/(costs) Profit before income tax Income tax expense Net profit attributable to shareholders 2019 100% 60% 40% 1% -16% -11% 14% 0.12% -0.02% 0.1% 14% 4% 10% 15% 0.11% 2% 13% -3% 10% Briscoe Common size balance sheet as at 26 Jan 2020 and 27 Jan 2019 2019 2020 change Assets: Current Assets Cash and cash equivalents Trade and otherreceivables Inwentories Held for sale assets Derivative financial instruments Total Current Assets -12.43% 0.27% -9.63% 22.11% 0.77% 22.18% 0 0.22% 45.27% 9.68% 0.51% 12.55% 0.78% 0.04% 23.55% 0.78% 0.18% -21.72% 25.19% 0.69% Non-aurrent Assets Property, plant and equipment Intangible assets Right-of use assets Deferred tax Inventment in equity securities Total Non-aurrent Assets Total Assets 13.96% 0.50% 38. 19% 168% 22.12% 76.45% 100% -11.22% -0.19% 38.19% 0.74% -5.79% 2172% 0.94% 27.92% 54.73% 100% 22.92% Liabilities Current liabilities Trade and other payables Lease liabilites Taxation payable Derivative financial instruments Total Current Liabilites 0 11.67% 2.55% 0.70% 0.15% 15.06% -11.26% 2.55% 117% 1.87% 0.12% 0.02% -9.85% 24.92% 0.21% 0.09% Non-Current Liabilties Trade and other payables Lease liabilities Total Non-Current Liabilities Total Liabilities 40.01% 0 0.21% 0.12% 40.01% 40.13% 55.19% 39.92% 25.13% 30.06% 74.87% 44.81% 30.06% -7.41% 0.14% Net Assets Equity Share Capital Cashflow hedgereserve Equity-based remuneration reserve Other reserves Retanied Earnings Total equity 0.18% 16.13% 0.07% 0.30% 7.59% 56.78% 74.87% 8.72% -0.07% 0.12% 9.51% 26.53% 44.81% 1.92% 24.25% 30.06% Briscoe Common-size income statement for the year 2019 and 20:20 2020 100% 61% 39% 1% -15% -11% Sales Reverne Cost of good sold Gross Profit Other operating income Store expenses Administration expenses Earnings before interest and tax Finance income Finance cost Net finance income/(costs) Profit before income tax Income tax expense Net profit attributable to shareholders 2019 100% 60% 40% 1% -16% -11% 14% 0.12% -0.02% 0.1% 14% 4% 10% 15% 0.11% 2% 13% -3% 10%