Question
Summary financial information for SIMOS CO is given below, covering the last two years. 2010 2011 Market Share Price 1.50 2.00 Balance Sheets Fixed Assets
Summary financial information for SIMOS CO is given below, covering the last two years.
2010 2011
| Market Share Price | 1.50 | 2.00 | ||
| Balance Sheets | ||||
| Fixed Assets | 600,000 | 400,000 | ||
| Current Assets: | ||||
| Stock | 100,000 | 100,000 | ||
| Debtors | 80,000 | 80,000 | ||
| Cash | 20,000 | 120,000 | ||
| 200,000 | 300,000 | |||
| Current Liabilities: (includes proposed dividends) | (176,000) | 24,000 | (153,000) | 147,000 |
| 624,000 | 547,000 | |||
| Capital and Reserves | ||||
| Ordinary 1 shares | 560,000 | 300,000 | ||
| Preference 1 shares (6%) | 50,000 | |||
| Reserves P&L a/c | 4000 | 97,000 | ||
| 8% Debentures | 60,000 | 100,000 | ||
| 624,000 | 547,000 | |||
| Income Statements: | ||||
| Sales | 1,040,000 | 698,000 | ||
| Cost of Sales | 728,000 | 193,000 | ||
| Gross Profit | 312,000 | 505,000 | ||
| Expenses (includes debenture interest) | 236,800 | 405,000 | ||
| Net Profit Before tax | 75,200 | 100,000 | ||
| Tax | 17,200 | 23,000 | ||
| Profit Before Dividends | 58,000 | 77,000 | ||
| Dividends | ||||
| - Ordinary | 28,000 | 32,000 | ||
| - Preference | 8,000 | |||
| Retained Profit | 30,000 | 37,000 |
Required
Evaluate the company's performance from the viewpoint of the shareholder. Ignore working capital.
Your answer should use appropriate ratios, including ROCE, Operating profit margin, Gearing ratio, interest cover, EPS and PE ratio.
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