Singapore University of Social Sciences

ACC202 Financial and accounting Managerial

You have just joined a company. The CEO has asked you to write a report on the financial performance and position of the company. The CEO is keen to know the strengths, weaknesses, areas of concern and recommendations for the company.

For purpose of this question, you may select any company which you are familiar or a listed company which you can easily obtain financial statements for analysis. You are required to compute and use

the following ratios to analyse the financial statements:

• Current ratio.
• Inventory turnover.
• Accounts receivable turnover.
• Debt to equity.
• Return on total assets.

The ratios must be computed over a 2-year period using the latest available information. You must attach relevant sections of the financial statements in the appendix, with the numbers used highlighted in yellow. Any assumptions made must be reasonable and clearly stated in the report.

(33 Marks)