subject financial statement analysis Act 450.

QUESTION 4) (30 pts) Below table is 2021 annual balance sheet of a company listed in Boursa Kuwait. Using the data in the table answer the questions. CONSOLIDATED STATEMENT OF FINANCIAL POSITION AS OF DECEMBER 31, 2020 (All amounts are in Kuwaiti Dinars) Note 2020 ASSETS Current assets: Cash and cash equivalents Financial assets at fair value through profit or loss (FVTPL) Accounts receivable and other debit balances Properties held for tr Total current assets 7,078,529 372,616 10,847,874 6,910,313 2019 9 902 507 826.000 14,607,937 17.079,258 42.415702 or trading 25 209 332 11,139,946 168,806,596 Non-current assets: Financial assets at fair value through other comprehensive income ("FVTOCI) Investment in an associate Investment properties Property, plant and equipment Goodwill Total non-current assets Total assets 3,115,718 9,859 742 171,152 381 540.684 2,254 210 186.922.735 229 338,437 373,468 2,254,210 162,574,220 207,783,552 10 11 LIABILITIES AND EQUITY Current liabilities: Accounts payable and other credit balances Advances from customers Lease liabilities Islamic bank facilities Term loans Total current liabilities 6,585,631 477,684 1,314,272 16,573,980 12 13 14 6,093,979 668,820 1,027.062 5,314,744 1,960,725 15,065331 24,951,567 11 Non-current liabilities: Accounts payable and other credit balances Lease liabilities Islamic bank facilities Term loans Provision for end of service indemnity Total non-current liabilities Total liabilities 14 8,107,425 11,755,388 81,444,252 1,618,585 102.925,650 127,877,217 9,678,176 12,922,160 91 868 247 5,404,019 1424854 121,297 456 136,362,787 15 16 17 Equity Share capital Share premium Treasury shares Statutory reserve Fair value reserve Employees' share option plan Other reserves Foreign currency translation reserve (Accumulated loss) Retained earnings Equity attributable to the shareholders of the Parent Company Non-controlling interests Total equity Total liabilities and equity 68,827,896 21,655,393 (18,819,349) 14,469,647 (4.874,003) 67,830 731,986 (11,259,558) (3.733,833) 67,066,009 12.840.32 79,906,335 207,783,552 68,827,896 21655393 119.288,845 14.489 647 (3.293,389) 237,109 731,966 (8,472,837) 5,020,551 79,887 511 13,068,139 92,975,650 229,338 437 CONSOLIDATED STATEMENT OF PROFIT OR LOSS FOR THE YEAR ENDED DECEMBER 31, 2020 (All amounts are in Kuwaiti Dinars) Note 2020 2019 20 9,906,539 Revenue Revenue from sale of properties held for trading Rental Income Net management fees and commission income Total revenue 9,368,573 271,632 19,546,744 19,084,068 8,726,764 52.344 27,863,176 Cost of revenue Cost of sale of properties held for trading Cost of rental Total cost (9,749,990) 12,139,441) (11,889,431) (20,971,859) (1.705 005) (22.676.864) 7,657,313 5,186,312 (838,351) (474,452) Gross profit Impairment loss on properties held for trading Share of results from an associate Share of results from joint venture Change in fair value of investment properties Selling and marketing expenses General and administrative expenses Operating loss 9 (4,076,282) (117,109) (3,576,486) (1,425,367) (2.470,542 46.490 587 869 (769,174) 1409 051) (4 198,051) (2,026,147) 21 540,539 Net investment income Effect of reclassification of an associate to financial assets at FVTOCI Net other expenses Amortization of finance costs related to lease liabilities Finance costs Loss for the year 98,333 172.194 (1,686,696) (657,938) (4,947,473) (8,446,947) (1,284,098) (315,844) (5,567 876) (8.653.426) a) Although company combined accounts receivables and other debit balances in one line item in the balance sheet (see Current Assets), what should be the main difference between accounts receivables and other debit balances? (Write a min. of 20 words) (5 pts) b) Calculate the percentage of assets devoted to cash and cash equivalents in 2019 and 2020 (Show the calculations otherwise you will not gain any points) (10 pts). c) Calculate percentage of change in "Total Revenue" and the change in "Accounts receivables and debit balances" from 2019 to 2020 separately. (Show the calculation otherwise you will not gain any points) (10 pts) d) Considering your answer for (c) indicate whether the change in receivables relative to change in revenue is favorable or not, and comment on the trend depending on at least one possible reason. (Write a min of 30 words) (5 pts)