Q1: Financial statements of Ohio State Company are given below for 2019 and 2020: Sales Cost of sales Gross Profit Overhead expenses Profit before interest and tax Loan interest Profit before tax Tax Net profit 2019 (OMR) 2,000,000 1,500,000 500,000 150,000 350,000 15.000 335,000 85,000 250,000 2020 (OMR) 1,500,000 1,300,000 200,000 100,000 100,000 10,000 90,000 45,000 45,000 2019 (OMR) 250,000 2020 (OMR) 300,000 65,000 150,000 65,000 530,000 90,000 275.000 55,000 720,000 Non-current assets Current assets: Inventory Receivables Bank Total assets Equity and reserves: Share capital Reserves Non-current liabilities: 9% Bank loan Current liabilities: Payables Bank overdraft Tax payable Total liabilities and Equity 200,000 75,000 300,000 150,000 15,000 20000 150,000 25,000 65,000 530,000 200,000 25,000 25.000 720,000 (a) Calculate DuPont ratio. ( (b) Calculate Altman's Z score. (0) Give appropriate analysis based on the results. Your analysis should be based on the following aspects: (0) Operating efficiency (ii) Asset effectiveness (iii) Capital structure - (iv) Level of financial distress faced by the company (o Q2: Following are the details of sales force personnel of a company. Assume alpha as 40% and beta as 30% and assume weights as 0.4 and 0.6. Year 2016 2017 2018 2019 2020 Sales force personnel (No. of people) (Y) 100 120 150 180 190 (a) Compute 2-point simple moving average (4 (b) Compute 2-point weighted moving average.( (e) Compute exponential smoothing forecasts.( (d) Compute adjusted exponential smoothing forecasts. (e) "Giving greater weight to more recent observations while forecasting will increase the accuracy of the forecast" Critically discuss the statement based on the answers obtained for: (a) weighted moving average and (b) both the exponential smoothing forecasts as examples. Q1: Financial statements of Ohio State Company are given below for 2019 and 2020: Sales Cost of sales Gross Profit Overhead expenses Profit before interest and tax Loan interest Profit before tax Tax Net profit 2019 (OMR) 2,000,000 1,500,000 500,000 150,000 350,000 15.000 335,000 85,000 250,000 2020 (OMR) 1,500,000 1,300,000 200,000 100,000 100,000 10,000 90,000 45,000 45,000 2019 (OMR) 250,000 2020 (OMR) 300,000 65,000 150,000 65,000 530,000 90,000 275.000 55,000 720,000 Non-current assets Current assets: Inventory Receivables Bank Total assets Equity and reserves: Share capital Reserves Non-current liabilities: 9% Bank loan Current liabilities: Payables Bank overdraft Tax payable Total liabilities and Equity 200,000 75,000 300,000 150,000 15,000 20000 150,000 25,000 65,000 530,000 200,000 25,000 25.000 720,000 (a) Calculate DuPont ratio. ( (b) Calculate Altman's Z score. (0) Give appropriate analysis based on the results. Your analysis should be based on the following aspects: (0) Operating efficiency (ii) Asset effectiveness (iii) Capital structure - (iv) Level of financial distress faced by the company (o Q2: Following are the details of sales force personnel of a company. Assume alpha as 40% and beta as 30% and assume weights as 0.4 and 0.6. Year 2016 2017 2018 2019 2020 Sales force personnel (No. of people) (Y) 100 120 150 180 190 (a) Compute 2-point simple moving average (4 (b) Compute 2-point weighted moving average.( (e) Compute exponential smoothing forecasts.( (d) Compute adjusted exponential smoothing forecasts. (e) "Giving greater weight to more recent observations while forecasting will increase the accuracy of the forecast" Critically discuss the statement based on the answers obtained for: (a) weighted moving average and (b) both the exponential smoothing forecasts as examples
