Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Part D (30 marks) You are an intern working in Harvest International (H). Currently, Hi is interested to invest RM1,00,000 either in 7-eleven Malaysia Holdings

image text in transcribed
Part D (30 marks) You are an intern working in Harvest International (H). Currently, Hi is interested to invest RM1,00,000 either in 7-eleven Malaysia Holdings Berhad MYNEWS Holdings Berhad. Your superior has asked you to interpret and compare the financial statements of both companies for the financial year 2017 Your team is required to produce an analysis report, which focuses on specific aspects of financial performance and financial position of both companies. Your report should contain the following Prepare the following ratio calculations (choose 8 ratios) based on the 2017 financial statements Profitability net profit margin, return on capital employed, capital turnover Liquidity -current ratio, quick ratio Working capital trade receivables collection period, trade payables payment period, inventory turnover Long-term solvency - debt to assets ratio, gearing ratio, interest coverage (16 marks) Analyze, interpret and compare the financial (8 statements of both companies. marks) o Recommend to the manager whether to invest in 7-eleven or MYNEWS. And explain the limitations of your ratio analysis in part (6 (b) above marks) Please use the following format to present your calculations (You are required to state the formula used clearly): Nel prola Revenue 100 Part D (30 marks) You are an intern working in Harvest International (H). Currently, Hi is interested to invest RM1,00,000 either in 7-eleven Malaysia Holdings Berhad MYNEWS Holdings Berhad. Your superior has asked you to interpret and compare the financial statements of both companies for the financial year 2017 Your team is required to produce an analysis report, which focuses on specific aspects of financial performance and financial position of both companies. Your report should contain the following Prepare the following ratio calculations (choose 8 ratios) based on the 2017 financial statements Profitability net profit margin, return on capital employed, capital turnover Liquidity -current ratio, quick ratio Working capital trade receivables collection period, trade payables payment period, inventory turnover Long-term solvency - debt to assets ratio, gearing ratio, interest coverage (16 marks) Analyze, interpret and compare the financial (8 statements of both companies. marks) o Recommend to the manager whether to invest in 7-eleven or MYNEWS. And explain the limitations of your ratio analysis in part (6 (b) above marks) Please use the following format to present your calculations (You are required to state the formula used clearly): Nel prola Revenue 100

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Financial Accounting For Non Specialities

Authors: Peter Atrill, Eddie McLaney

2nd Edition

0139833625, 9780139833625

More Books

Students also viewed these Accounting questions