Question
he following data relates to a company in the manufacturing sector in Kenya for the year ending 31 December 2019. Kshs. 000 Sales 25,678 Total
he following data relates to a company in the manufacturing sector in Kenya for the year ending 31 December 2019.
Kshs. 000
Sales 25,678
Total Assets 49,579
Total Liabilities 5,044
Retained Earnings 1,77
Working Capital -1,777
Earnings before Interest and Taxes 2,605
Market value of Equity 10,098
Book value of Total Liabilities 5,044
The company is paying interest on a long-term debt instrument amounting to Kshs. 905,000 per year and that the companys total liabilities is constituted in the ratio of 2:5 between current and non-current components. Using the Springate model assess the financial health of the company (3 Marks) Taking each variable above explain how the management of the above company can improve the financial health of this company (12 Marks)
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started