I have done the horizantal analysis and the ratios , i need the answers for conclusion and strengths and weekness
However, business has been slow and they are losing morale. They have called you to give their financial statements a look and provide much needed advice/guidance. First, perform the Horizontal Analysis (as a %) using 2018 as the base year. 1) What can you conclude about the company's overall health/performance compared to the Industry average with regards to the following (fill the table): Line Item Cash Total Inventory Total Liabilities Cost of Goods Sold Gross Profit Net Income 2019 % -28.17% -7.69% -10.57 0.0% -10096 -13.08% 2020 % -66.67% -4.62% -17.51% 16.67% -233.3% -58.97% Ind. Avg. Conclusions 200% 116% 130% 123% 136% 110% 2) On the excel sheet provided, calculate all of the ratios included in the equation sheet provided on the next page. 3) You were not able to find the industry averages for Kuwait for the above ratios. However, what conclusions can you make from the ratios? 4) Based on all your calculations and conclusions above, your friends want you to answer the following questions honestly: 1. How well are they doing? List as many strengths/pros and weaknesses/cons on his performance as you can below: Areas of Strength Areas of Weakness 2. Lastly, and based on what you have found, they want you recommendation on whether they should continue, or cut their losses and close down? Provide a clear justification for your recommendation. Ratios current quick or acid test inventory turnover debt ratio intrest coverage net profit margin gross profit margin Net returtn on assets gross return on assets 2018 2019 2020 3.759252336 2.329624478 1.569739953 2.544299065 1.495132128 0.836879433 0.461538462 0.5 0.564516129 0.556337337 0.49339207 0.459066565 5.571428571 4.842857143 3.2 -325.00% -226.00% -74.42% -3.25 -2.26 -0.744186047 -0.12763033 -0.119471366 -0.061208875 -0.12763033 -0.119471366 -0.061208875 Yumtum Co All Amounts in KWD Horizantal analysis Sheet 2018 1019 2070 2018 2018 2020 4350 Mul rulle Indutry Avers 08 100 2.000 WEI 1 100 MOBOR MO 40 UNIT NOI 100 BON 1971 - ARTE 3,20 458 1. 1100 so NI WT Any Cash the Terme About Me Totally walde Total ortantes Pumusted Depreciation Tec Proper/annou. Nu Lorem isme Total Art 1001 LON WO WEER TE TOON 21.000 11.10 OD - 26 16 ON 100 ON 34 -100 BON - 1 V/01 NOVO 111 TUN JON MIN IN 105N RUDE 20 O 1 0557 TOON 24,37 26.140 2,150 100 1,500 450 OSE 150 175 150 230 MY NERE WOOD NO ME 200.00 4 100 DIN -1441 BV Ovo 6110 ON 0.00 31415 SAIN IN -20AN 20:41 100 100 CON Les Act Payable Antrade Notes abort Term DR O Current Total Total Current Long Tere Debt Total Long Term Det Total De Minority interest Other sites Total Total CO IN 20 300 1001 100N 107 107 10 LON 175 2.675 17.000 17 000 17.000 34.000 14.000 14.000 OON BOON 100 1 100 ON TOON 100N SOON 100% 100% 1. 100 100% DOON SOON TOON 100% Oo TOON 100 LOW LOON IDON BOON 12.000 12.000 12.000 12.45 -17,49 TAN 100 DO 30000 -10.57N NOWO OVO 0.00 1 1.6T 17.595 16.110 10% MISET 10/NOH OVOR 7.500 2.400 7.500 2.000 MOSE NOOOO Shares Commons-Total Additional Paid in Capital Retained aming Accedi Tremury So Carmon uvelled Gain ons Other Total Total Equity 7. 2.000 1 1 201 1380 100% 100N 12 LOIS 25 IN SORS DON ON TOON 100.CON 100 DO -3029 100 780 10.780 110 9.910 ON NUO D/NGE NE JOINION In Sternet ONDE DO 19 10 NO 1200 20. ING 2.10 G IN NOST 100 NOWO NOCE WOO WE WOS NOS WE WOO MOS GENOCE w TAN 100 100 w WI 000 100 ON DON DO DO LINN VIN 40 41 42 Revenue 43 Total 44 Cod of God 45 Gross the 46 42 M/Genero 48 interest 49 Une 50 Other Operating Expert 51 Total Operating S2 Derating income 53 interest income 54 Gain Lomon Sale of Art 55 EBIT SON TOON ins BON 100 JAN 1000 ol los WI NOL . food bom VE INN DE 1 ON JON SON 100 100.00% -10000 1 100 300 SEN OVO -100 UN VOIT OOR 1. TO 1 w WOT IN WE WOO 3000 57 Proton for increas 58 Net Income Altera 55 Minority interest B0 Net Income 10061 1 100 100 WOT 11.000
