Group Assignment One for MBA Students $2024(5$Marks$)-$deadline $24/4/24$

Question One $(25$ Marks$)$

Summary financial information for ABC Co is given below, covering the last two years

$\backslash$table$[[,$Current Year,Previous Year$],[$Income Statement Extract,TZS $\text{'}000\text{'},$TZS $\text{'}000\text{'}],[$Revenue$,74,521,68,000],[$Cost of sales,$28,256,25,772],[$Salaries and wages,$20,027,19,562],[$Other costs,$11,489,9,160],[$PBIT$,14,749,13,506],[$Interest$,1,553,1,863],[$Tax$,4,347,3,726],[$PAIT$,8,849,7,917],[$Dividend payable,$4,800,3,100]]$

$\backslash$table$[[,$Current Year,Previous Year$],[$Income Statement Extract,TZS $\text{'}000\text{'},$TZS $\text{'}000\text{'}],[$Shareholders$\text{'}$ funds,$39,900,35,087],[$Long term debt,$14,000,17,500]]$

$\backslash$table$[[$Other information,,$],[$Number of shares issued $"000",14,000,14,000],[$P$/$E ratio $($average for the year$),,],[$ABC Co$,14,13],[$Industry$,15\mathrm{.}2,15]]$

Required:

$($a$)$ Using profitability, debt, and shareholders' investment ratios, discuss the performance of ABC Co over the last two years.

$($b$)$ Explain why accounting profits may not be the best measure of a company's achievements.

$($c$)$ Discuss how good corporate governance procedures can help to manage underperformance in private sector companies.