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hlo instructor, please can you sort out the question in fourth picture Part C writing a business report using the format provided in fifth picture
hlo instructor, please can you sort out the question in fourth picture Part C writing a business report using the format provided in fifth picture this business report should provide assessment of the strength and weaknesses of this company and overall recommendation. please angel do something......help me
AadcoAutomotive Inc. Consolidated Statements of Income For the years ending Dec. 28, 2017 and Dec. 29, 2016 (Cdn dollar amounts shown in Millions) 2017 800.0 600.0 200.0 100.0% 75.0% 25.0% 2016 600.0 400.0 200.0 100.0% 66.7% 33.3% 88.7 13.1 Sales Cost of Sales Gross Margin Expenses Selling, General & Administration Dismantling Labour Dismantling Overhead Earnings from Operations Interest Expense (5% of LTD) Earnings Before Income Taxes Income Tax Expense Net Earnings 99.4 14.6 8.0 78.0 7.8 9.8% 90.4 15.1% 5.0 2.5 9.1% 14.7% 73.0 20.0 53.0 6.6% 27.0 67.9 11.3% Aadco Automotive Inc. Consolidated Blance Sheet December 28, 2017 and December 29, 2016 (Cdn Dollar amounts in Millions) 2017 2016 Assets Current Assets Cash and Cash Equivalents Accounts Receivable Income Tax Receivable Inventory Prepaid Expenses Total Current Assets Property Plant & Equipment Other assets, intangibles, goodwill Total Assets 62.5 143.8 2.9 150.6 4.3 364.1 350.0 22.3 736.4 100.0 98.4 3.6 160.0 3.0 365.0 300.0 20.0 685.0 2016 Purpak Ltd. Consolidated Balance Sheet December 28, 2017 and December 29, 2016 (Cdn Dollar amounts in millions) 2017 Liabilities and Shareholder Equity Liabilities Current Liabilities 61.4 Long Term Debt (5.0% int per annum) 100.0 Total Liabilities 161.4 60.0 50.0 110.0 Shareholder Equity Common Shares Retained Earnings 20.0 555.0 20.0 555.0 Total Shareholder Equity 575.0 575.0 Total Liabilities and Shareholder Equity 736.4 685.0 Other Financial Information Number of Common Shares Outstanding 10 Million Number of preferred shares Outstanding 0 10 Million 3/5 Pures College Financial Accounting II Assignment #1 Part A-Ratio Analysis (15 marks) Calculate the financial ratios based on the financial information provided (both years) Part B- Benchmark Analysis (15 marks) Compare the actual company ratios to the benchmarks/industry average provided. (most recent year only) Industry Average Benchmark Actual Comments-Better/Worse Current 2 to1 Acid 1.5 to1 Return on Assets 7% Return on Equity 10% Debt to Equity 2 to 1 Interest Coverage 2x Earnings per share 20 cents Price Earnings (price $ 10) 5 X Inventory Turnover 2.45X Receivables Turnover 4.3x Return on Sales 10% Debt Ratio 2 to 1 Days Sales Working Capital $3M Part C- Write a Business Report using the format provided and Attach Part A and Part B as appendices. Your business report si Doug Kemp Welch CEO ABC Capital Inc. October 9, 2019 Manpreet Singh Jr Analyst Re: Financial Statement Analysis We have completed our analysis of our financial statements and provide our findings summarized as follows: Liquidity-Improving Trend/Excess Liquidity 1. 2X industry average 2. Current Ratio 3. Acid Test Ratio Solvency 1. Debt Ratio 2. Debt Equity Ratio 3. Interest Coverage Ratio Profitability 1. ROA 2. ROE 3. ROS 4. EPS 5. P/E Ratio Efficiency 1. Inventory Turnover 2. Receivables Turnover 3. Days Sales in Receivables Analysis Regards Manpreet SinghStep by Step Solution
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