Subject: Financial statement analysis
Question 2 Puan Bunga, a Chief Financial Officer of CIMZee Bank is evaluating YOONG ONN CORPORATION BERHAD (YOCB), for a loan approval. You have been hired to help her diagnose and made recommendation on the loan. YOCB is a leading integrated manufacturer and distributor of home linen which focuses on the production of exceptional-quality bed and bath linen, bedding accessories and curtains. Refer to the financial statements of YOCB in Exhibit 1.0 (in page 7 to 10), you are required to answer the following questions. a. Prepare a common-size analysis for the group for the year of 2020 and 2019 based on Statements of Profit or Loss and other Comprehensive Income. Use revenue as the base. (2 Marks) b. Prepare a common-size analysis for the group for the year of 2020 and 2019 based on Statements of Profit or Loss and other Comprehensive Income. Use year 2019 as the base. (2 Marks) Comment on significant trends that appeared in part (a) and (b). (2 Marks) d. Compute the net trade cycle for the group for Year 2020 and 2019. (Use end-of-year values for computations requiring average) (4 Marks) Note: C. i. Use trade receivables. ii. Use trade payables. ii. Use depreciation of property, plant and equipment. iv. Inventory for Year 2018 was RM103,468,000. e. Comment the results of your computations in part (d). (2 Marks) f. Calculate the following measures for the group for Year 2020 and 2019: i. total liabilities to total assets (4 Marks) ii. total liabilities to total equity (4 Marks) g. Discuss your overall impression of the capital structures of YOCB based on your calculation in part (f). (2 Marks) h. Give your recommendation to Puan Bunga by analyzing your answer in part (c), (e) and (g). Should she grant the loan to YOONG ONN CORPORATION BERHAD? Explain your answer. (3 Marks) (Total: 25 Marks) Question 2 Puan Bunga, a Chief Financial Officer of CIMZee Bank is evaluating YOONG ONN CORPORATION BERHAD (YOCB), for a loan approval. You have been hired to help her diagnose and made recommendation on the loan. YOCB is a leading integrated manufacturer and distributor of home linen which focuses on the production of exceptional-quality bed and bath linen, bedding accessories and curtains. Refer to the financial statements of YOCB in Exhibit 1.0 (in page 7 to 10), you are required to answer the following questions. a. Prepare a common-size analysis for the group for the year of 2020 and 2019 based on Statements of Profit or Loss and other Comprehensive Income. Use revenue as the base. (2 Marks) b. Prepare a common-size analysis for the group for the year of 2020 and 2019 based on Statements of Profit or Loss and other Comprehensive Income. Use year 2019 as the base. (2 Marks) Comment on significant trends that appeared in part (a) and (b). (2 Marks) d. Compute the net trade cycle for the group for Year 2020 and 2019. (Use end-of-year values for computations requiring average) (4 Marks) Note: C. i. Use trade receivables. ii. Use trade payables. ii. Use depreciation of property, plant and equipment. iv. Inventory for Year 2018 was RM103,468,000. e. Comment the results of your computations in part (d). (2 Marks) f. Calculate the following measures for the group for Year 2020 and 2019: i. total liabilities to total assets (4 Marks) ii. total liabilities to total equity (4 Marks) g. Discuss your overall impression of the capital structures of YOCB based on your calculation in part (f). (2 Marks) h. Give your recommendation to Puan Bunga by analyzing your answer in part (c), (e) and (g). Should she grant the loan to YOONG ONN CORPORATION BERHAD? Explain your answer. (3 Marks) (Total: 25 Marks)
