Financial statement analysis Q1: Dan Inc. is a publicly traded company involved in selling personal computers (PCL servers, data storage devices, network switches, software, computer peripherals HDTV, cameras, printers, MP3 players, and electronics built by other manufacturers. The company is well known for its unique organization capital and innovative supply chain management. With the publication of the latest financial statements for the year to 30 Jan 2017, the CEO made a brief statement and it includes the following two points - The company was performing well and it has a highly talented management . One of the key success factor of our management is the adoption of working capital management strategy. We believe that managing investment in working capital lead to managing long-term investment efficiently and effectively and hence Creating value to our shareholder The CEO expressed a desire to make Dan Inc. the leading technology firm company through a rapid expansion le short cut to growth via acquisition. He plans to acquire his direct competitor so as to increase Dan in market share. Given below are extracts from the recent financial statements, some ratios, and other financial information for Dan Inc. Dan Inc Year ending 30 November financial ratios 2015 2016 2017 industry SONY 16 0.8 NPMN TAT ROAIN) Current Ratio Total ity/Total assets ratio 23 22 19 079 085101 18.17 18.7 19.2 080065063 ) 36 37 31 40 Shares Duys Inventory Held Days A/R Outstanding Days A/P Outstanding Required: Prepare a report for the Dan's board of directors. In your report you should (a) Critically evaluate Dan Inc.'s performance and conclude whether the chief executive officer's opinion has the greater validity. (10 marks) (b) State clearly any limitations and assumptions that you made in your calculations marks) One of the key success factor of our management is the adoption of working capital management strategy. We believe that managing investment in working capital lead to managing long term investment efficiently and effectively and hence creating value to our shareholder The CEO expressed a desire to make Dan Inc. the leading technology for company through a rapid expansion ie short cut to growth via acquisition. He plans to acquire his direct competitor so as to increase Dan in market share. Given below are extracts from the recent financial statements, some ratios, and other financial information for Dan Inc Year ending 30 November nancial ratios 2015 2016 2017 Industry NPM (W) TAT 23 079 18.17 22 085 18.7 19 1.01 19.2 0.8 12.8 ROA (N) 080 Current Ratio Total liability / Total assets ratio (%) Shares Days Inventory Held Days A/R Outstanding Days A/P Outstanding 9345 36 37 50 49 95 31 42 40 60 Required: Prepare a report for the Dan's board of directors. In your report you should (a) Critically evaluate Dan Inc.'s performance and conclude whether the chief executive oficer's opinion has the greater validity. (10 marks) (b) State clearly any limitations and assumptions that you made in your calculations (c) Marks will be awarded for Professional format, structure and presentation of the report (2 marks) Financial statement analysis Q1: Dan Inc. is a publicly traded company involved in selling personal computers (PCL servers, data storage devices, network switches, software, computer peripherals HDTV, cameras, printers, MP3 players, and electronics built by other manufacturers. The company is well known for its unique organization capital and innovative supply chain management. With the publication of the latest financial statements for the year to 30 Jan 2017, the CEO made a brief statement and it includes the following two points - The company was performing well and it has a highly talented management . One of the key success factor of our management is the adoption of working capital management strategy. We believe that managing investment in working capital lead to managing long-term investment efficiently and effectively and hence Creating value to our shareholder The CEO expressed a desire to make Dan Inc. the leading technology firm company through a rapid expansion le short cut to growth via acquisition. He plans to acquire his direct competitor so as to increase Dan in market share. Given below are extracts from the recent financial statements, some ratios, and other financial information for Dan Inc. Dan Inc Year ending 30 November financial ratios 2015 2016 2017 industry SONY 16 0.8 NPMN TAT ROAIN) Current Ratio Total ity/Total assets ratio 23 22 19 079 085101 18.17 18.7 19.2 080065063 ) 36 37 31 40 Shares Duys Inventory Held Days A/R Outstanding Days A/P Outstanding Required: Prepare a report for the Dan's board of directors. In your report you should (a) Critically evaluate Dan Inc.'s performance and conclude whether the chief executive officer's opinion has the greater validity. (10 marks) (b) State clearly any limitations and assumptions that you made in your calculations marks) One of the key success factor of our management is the adoption of working capital management strategy. We believe that managing investment in working capital lead to managing long term investment efficiently and effectively and hence creating value to our shareholder The CEO expressed a desire to make Dan Inc. the leading technology for company through a rapid expansion ie short cut to growth via acquisition. He plans to acquire his direct competitor so as to increase Dan in market share. Given below are extracts from the recent financial statements, some ratios, and other financial information for Dan Inc Year ending 30 November nancial ratios 2015 2016 2017 Industry NPM (W) TAT 23 079 18.17 22 085 18.7 19 1.01 19.2 0.8 12.8 ROA (N) 080 Current Ratio Total liability / Total assets ratio (%) Shares Days Inventory Held Days A/R Outstanding Days A/P Outstanding 9345 36 37 50 49 95 31 42 40 60 Required: Prepare a report for the Dan's board of directors. In your report you should (a) Critically evaluate Dan Inc.'s performance and conclude whether the chief executive oficer's opinion has the greater validity. (10 marks) (b) State clearly any limitations and assumptions that you made in your calculations (c) Marks will be awarded for Professional format, structure and presentation of the report (2 marks)