Kindly work out the problem fully

QUESTION 4: (CPANov., 1995) Selected data from the annual accounts of POLOSLtd. for the past three years are reproduced below. You are asked to evaluate the performance of the company over this period; and to discuss the possibility of it becoming the target for a take-over bid. To assist you in this assessment thefollowing median performance indicator shave been extracted from a recent inter-firm comparison report on the industry in which POLOS is engaged Profit before Tax : Net Assets employed - 28\% Annual Sales : Stock at year-end - 6.5 times Debtors : Annual Sales/12 - 3 months Annual Sales per employee - shs. 4,800 Average payroll cost per employee - shs. 1,200 Your analysis however should not be confined to these few ratios. (20 marks) Ratio Questions Apt Financial Consultants CPA Reviews SUMMARISED FINANCIAL INFORMATION (All figures are in shs. 000's except number of employees) Year ending 31st December 199019911992 Sales - Home 1,948 2,763 2,805 - Export 715802985 3,6633,5653,790 Profit before Tax 222360250 After charging: - Depreciation 758078 - Payroll costs 1,295 1,310 1,275 Deduct: Tax 82170108 PreferenceDiv.151515 Ordinary Div. 70105105 Profit Retained 557022 BALANCE SHEET AT YEAREND Current Assets 199019911992 Stocks515627655 Debtors 1,1171,1101,012 Cash and Short-term Investments 228440448 1,8602,1772,115 Current Liabilities TradeCreditors580740807 Other 190325233 7701,0651,040 Net Current Assets 1,0901,1121,075 Fixed Assets Land \& Buildings(Revalued 1990) 1,357 1,357 1,357 Others-at cost 2,2502,3502,412 Less: Depreciation 1,9621,0422,097 288308315 1,6451,6651,672 Netassetsemployed2,7352,7772,747 Average number of employees 1,3871,4151,310 QUESTION 4: (CPANov., 1995) Selected data from the annual accounts of POLOSLtd. for the past three years are reproduced below. You are asked to evaluate the performance of the company over this period; and to discuss the possibility of it becoming the target for a take-over bid. To assist you in this assessment thefollowing median performance indicator shave been extracted from a recent inter-firm comparison report on the industry in which POLOS is engaged Profit before Tax : Net Assets employed - 28\% Annual Sales : Stock at year-end - 6.5 times Debtors : Annual Sales/12 - 3 months Annual Sales per employee - shs. 4,800 Average payroll cost per employee - shs. 1,200 Your analysis however should not be confined to these few ratios. (20 marks) Ratio Questions Apt Financial Consultants CPA Reviews SUMMARISED FINANCIAL INFORMATION (All figures are in shs. 000's except number of employees) Year ending 31st December 199019911992 Sales - Home 1,948 2,763 2,805 - Export 715802985 3,6633,5653,790 Profit before Tax 222360250 After charging: - Depreciation 758078 - Payroll costs 1,295 1,310 1,275 Deduct: Tax 82170108 PreferenceDiv.151515 Ordinary Div. 70105105 Profit Retained 557022 BALANCE SHEET AT YEAREND Current Assets 199019911992 Stocks515627655 Debtors 1,1171,1101,012 Cash and Short-term Investments 228440448 1,8602,1772,115 Current Liabilities TradeCreditors580740807 Other 190325233 7701,0651,040 Net Current Assets 1,0901,1121,075 Fixed Assets Land \& Buildings(Revalued 1990) 1,357 1,357 1,357 Others-at cost 2,2502,3502,412 Less: Depreciation 1,9621,0422,097 288308315 1,6451,6651,672 Netassetsemployed2,7352,7772,747 Average number of employees 1,3871,4151,310