Michael Hill International Ltd

Using the annual report of Michael Hill International Ltd, for 2014-2015, answer the following questions.

(Company annual reports for 2014 and 2015 can be obtained from this website. Visit:

http://investor.michaelhill.com/phoenix.zhtml?c=170266&p=irol-reportsannual

Required:

1. Using the Consolidated financial statements of Michael Hill International Ltd for the years 2014 and 2015, prepare common-size balance sheets and income statements. (4 marks)

2. Evaluate the sales, operating expenses, gross margin, net-profit margin asset, debt and equity structure, of Michael Hill International Ltd and explain trends and changes found using the common-size financial statements. (10 marks)

3. Using relevant ratios, and other associated information available in the public domain, assess the financial health of Michael Hill International Ltd based from the point of view of an investor in share capital. (8 marks)

4. Assume you are a banker evaluating a loan request from Michael Hill International Ltd for $ 50 million. What would be your concerns when making a decision regarding approval or denial of the loan request? Justify. (10 marks)