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Please help me anser by filling in the blanks Required: Analyze the performance of Company Aye Limited by answering the questions below. Support your analysis
Please help me anser by filling in the blanks Required: Analyze the performance of Company Aye Limited by answering the questions below. Support your analysis with specific items and balances and ratios from extracts of financial information above only. Note: In Seminar we learn to complement our analysis of the performance of a company with cash flows. In Seminar before we learn Financial Analysis, our analysis was more generic whereby we could only deduce the performance of the Company using increasesdecreases in balances only. In this team assignment, we would be able to support our analysis in greater depth by using appropriate ratios. a How was increase in Gross Profit and Net Profit likely to have been achieved? The increase in Gross Profit and Net Profit were predominantly driven by Revenue as analyzed from yearonyear increase in the f Revenue. Specifically, this can be demonstrated from the Margin had remained largely consistent throughout the years. However, Margin had decreased in and this may likely be attributable to the increase in remuneration of the CEO.Question b How was the increase in Revenue likely to have been achieved? The increase in Revenue was likely achieved with relaxation of credit policy as analyzed by the increase in the of Trade Receivables. Specifically, this can be demonstrated from the decrease in and the increase in Trade Receivables are taking longer to pay the Company as a result of the relaxation of credit policy. assume all Revenue were credit Sales na as balance for is not available for a good comparative analysis c Comment on the potential areas of concern in the upcoming financial years. he increase in the average collection period is a "red flag" for potential issue of The financial statements of Company Aye Limited the Company" reported the following information for its financial years FY ended Company Aye Limited appointed a new Chief Executive Officer at the end of its FY in line with its strategy to expand its operations and increase profitability. The remuneration arrangement of the Chief Executive Officer is based on the profitability of the Company.
Please help me anser by filling in the blanks
Required:
Analyze the performance of Company Aye Limited by answering the questions below. Support
your analysis with specific items and balances and ratios from extracts of financial information
above only.
Note:
In Seminar we learn to complement our analysis of the performance of a company with cash
flows.
In Seminar before we learn Financial Analysis, our analysis was more generic whereby we
could only deduce the performance of the Company using increasesdecreases in balances only.
In this team assignment, we would be able to support our analysis in greater depth by using
appropriate ratios.
a How was increase in Gross Profit and Net Profit likely to have been achieved?
The increase in Gross Profit and Net Profit were predominantly driven by Revenue as
analyzed from yearonyear increase in the
f Revenue.
Specifically, this can be demonstrated from the
Margin had remained largely consistent throughout the years.
However,
Margin had decreased in and this may likely
be attributable to the increase in remuneration of the CEO.Question b How was the increase in Revenue likely to have been achieved?
The increase in Revenue was likely achieved with relaxation of credit policy as analyzed by the
increase in the
of Trade Receivables.
Specifically, this can be demonstrated from the decrease in
and the increase in
Trade Receivables are taking longer
to pay the Company as a result of the relaxation of credit policy. assume all Revenue
were credit Sales
na as balance for is not available for a good comparative analysis
c Comment on the potential areas of concern in the upcoming financial years.
he increase in the average collection period is a "red flag" for potential issue of
The financial statements of Company Aye Limited the Company" reported the following
information for its financial years FY ended
Company Aye Limited appointed a new Chief Executive Officer at the end of its FY in
line with its strategy to expand its operations and increase profitability. The remuneration
arrangement of the Chief Executive Officer is based on the profitability of the Company.
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