• Fill in the table below with information from the financial statements provided in your chosen companys case study. Calculate the % change between the current year and previous year for each item. Remember to correctly identify the currency for your case study.

	Most Current Year	% Chg (+/)	Previous Year
Current Assets
Total Assets
Current Liabilities
Total Debt
Sales/Revenue
Cost of Goods Sold
Inventory
Net Income/Loss

• From the information in the table above, identify which line items are increasing with a plus sign and which are decreasing with a minus sign. Evaluate whether the change from the previous year is good or bad for the companys performance and explain why.

• Use the information in the table above to calculate the following financial ratios. Explain what the result of each ratio says about your chosen companys financial health.
  • Current Ratio

• Debt to Asset Ratio (Debt Ratio)

• Inventory Turnover

• Return on Sales (Profit Margin)

Summarize your information and identify potential problem areas as reflected in the financials.

EXHIBIT 1: STIA HOLZINDUSTRIE GMBH BALANCE SHEET (STRUCTURED AS REQUIRED BY AUSTRIAN ACCOUNTING STANDARDS, IN MILLIONS OF EUROS) 31/12/2013 31/12/2012 Long-term intangible assets 2.4 2.6 Long-term tangible assets 10.2 12.0 Financial assets 0.4 0.3 Fixed assets 13.0 14.9 Inventory 19.4 21.1 Accounts receivable 2.7a 3.1 Cash/bank 0.8 0.1 Current assets 22.9 24.3 Prepaid expenses 0.9 0.8 TOTAL ASSETS 36.8 40.0 Share capital 2.1 2.1 Accumulated profits 4.5 6.5 Own funds 6.6 8.6 Subsidies 0 0.5 Provisions/accruals 2.8 2.5 Bank debt 4.2b 10.8 Accounts payable 0.7c 0.5 Liabilities toward affiliated companies 21.8d 16.4 Other liabilities 0.7 0.8 Total liabilities 27.4 28.5 TOTAL EQUITY AND LIABILITIES 36.8 40.0 a 100% of accounts receivable are short term (< 1 year) b 100% of bank debts are short-term loans (< 1 year) c 100% of accounts payable are short term (< 1 year) d 11.9% of liabilities toward affiliated companies are short term (< 1 year) Source: Austrian Commercial Register (figures summarized by the author). EXHIBIT 2: STIA HOLZINDUSTRIE GMBH INCOME STATEMENT (STRUCTURED AS REQUIRED BY AUSTRIAN ACCOUNTING STANDARDS) 2013 2012 Revenues 47.1 48.5 Changes in inventory -0.1 0.7 - Cost of goods sold (including cost of external services used) -26.2 -26.8 Net margin 20.8 22.4 Non-operating income 1.1 0.9 - HR expenses -12.3 -11.9 - Depreciation -3.3 -3.2 - Other operating expenses -7.8 -7.7 Net financial income or expenses -0.5 -0.6 Profit from ordinary activities (earnings before taxes) -2.0 -0.1 Source: Austrian Commercial Register (figures summarized by the author). This document is authorized for use only by Harold Rawles in OL-501-X3141 Business Foundations 22TW3 at Southern New Hampshire University, 2022. Page 10 9B16M045 EXHIBIT 3: MILESTONES IN THE DEVELOPMENT OF THE ADMONT MONASTERY AND ITS BUSINESSES Year Milestone Around 529 Saint Benedict of Nursia writes Regula Benedicti: the famous monastic rules of the Benedictine order that he founded 1074 Foundation of the Benedictine Abbey of Admont by Archbishop Gebhard of Salzburg based on an endowment by Saint Hemma of Gurk 1139 Establishment of the monasterys vineyard estate in the village of Jarenina (in todays Slovenia) 1644 Establishment of the monasterys high school 1776 Completion of the Baroque library of Admont Monastery 1865 A fire that sweeps through the whole monastery, with the exception of the library 1906 Opening of the Bosruck railway tunnel near Admont, creating a new direct connection through the Alps 1911 Opening of the monasterys first electrical power plant 1930s Severe economic difficulties; the monastery needs to sell part of its art collection to survive 1939 Expropriation of the monastery by the Nazi regime; the monks are forced to leave 1945 Return of the monks to Admont after the end of World War II 1972 Establishment of STIA Holzindustrie GmbH (with 13 employees) 1973 Establishment of DANA Trenindustrie GmbH together with a joint venture partner 1989 Development of STIAs bestselling wide plank floors 1994 Beginning of the tenure of Helmuth Neuner as Admont Monasterys business director 1996 Beginning of the tenure of Abbot Bruno Hubl 2003 Opening of Admont Monasterys new universal museum 2005 Sale of DANA Trenindustrie GmbH to the Danish Vest-Wood Group 2005 Start of STIAs continuous improvement initiative, focusing on cleanliness, order, and safety 2010 Purchase of11 apartment buildings, with 276 apartments, by the monastery 2013 Relaunch of STIAs Admonter brand with a new focus on the end consumer Source: Created by the author based on interview data and the websites of the Admont Monastery and STIA Holzindustrie. This document is authorized for use only by Harold Rawles in OL-501-X3141 Business Foundations 22TW3 at Southern New Hampshire University, 2022. Page 11 9B16M045 EXHIBIT 4: ROUNDWOOD PRICES IN EUROS PER SOLID CUBIC METRE IN AUSTRIA (ANNUAL AVERAGE 20062014) Source: Created by the author based on the average of product categories 911, 912, 913, and 914 (long timber spruce/fir [cat. B]) in Preise, Preisindex: Land- und Forstwirtschaftliche Erzeugerpreise 2008 bis 2014, Statistik Austria, accessed April 3, 2015, www.statistik.at/web_de/statistiken/land_und_forstwirtschaft/preise_bilanzen/preise_preisindex. EXHIBIT 5: WOOD FLOORING INDUSTRY TRENDS IN SELECTED EUROPEAN MARKETS Country Per-capita consumption of parquet in m2 (2013) General market trend (09/2014) Explanation of the market trend Austria 0.77 Estimated 3% decline (Jan. to Sep. 2014) compared to the same period last year Belgium 0.19 Stable market demand France 0.18 Estimated 1012% decline (Jan. to Sep. 2014) compared to the same period last year Germany 0.25 Estimated 12% decline (Jan. to Aug. 2014) compared to the same period last year Italy 0.13 Low consumption overall; 20% decline in parquet sales, but also an estimated 15% in ceramics. Outlook remains negative. Netherlands 0.05 Significant overcapacity in production (Producers try to find new export markets. Parquet consumption continues to decline.) Spain 0.12 Stable market demand but remaining at a low level Sweden 0.65 Estimated 3% increase (Jan. to Sep. 2014) compared to the same period last year (Increase in the construction of one-family houses.) Switzerland 0.79 Stable market demand Source: Press Releases 2014, European Federation of the Parquet Industry, accessed April 3, 2015, www.parquet.net/nl/press/press-releases. 75.47 77.06 73.05 71.24 81.53 91.61 94.61 97.74 96.96 60 70 80 90 100 2006 2007 2008 2009 2010 2011 2012 2013 2014 This document is authorized for use only by Harold Rawles in OL-501-X3141 Business Foundations 22TW3 at Southern New Hampshire University, 2022. Page 12 9B16M045 EXHIBIT 6: MAJOR EXPORTING COUNTRIES OF MULTILAYER WOODEN FLOORING PANELS (EXPORT VALUE IN MILLIONS OF EUROS) Country 2010 2011 2012 2013 2014 Austria 187.9 192.2 192.0 195.2 179.3 Sweden 130.3 147.4 158.8 175.4 189.9 Germany 123.2 151.8 151.4 155.0 144.6 Poland 112.5 123.7 127.4 142.8 162.1 China 46.4 65.3 71.2 91.9 104.9