QUESTION ONE

A. Briefly explain the importance of corporate financial planning. [4 Marks]

B. Outline the financial planning process. [4 Marks]

C. Describe the importance of financial analysis as it relates to a companys financial performance and reporting. [4 Marks]

D. For each ratio category below, identify a single ratio and briefly explain the type of information this ratio provides and the most positive result each ratio should yield.

a. Liquidity Ratios

b. Profitability Ratios

c. Gearing Ratios

d. Efficiency

[8 Marks]