TA | Pi emporada Followings are extracted from year 2020 annual financial report of ABC company listed in fua Kuwait Consolidated Statement of income for the year ended 31 December 2020 Note 19 20 11 Sales Cost of sales Gross lossl/profit Other operating income Selling meral and administrative expenses Operating profil Provision for expected credit losses Finance charges Interest income Net investment profits Group's share of results of associates Netloss profit before deductions Contribution to Kuwait Foundation for the Advancement of Sciences National Labour Support To Satan Dan 2020 2018 43,455, 225 ELR19.157 SAMST 140PS (11.970,31 7,786,072 21 3.660 777 1408225 (15,37,241 4,186,706 14.128,693 De 244,177 DEAT 25,90 3.550 2.656.230 1105231 1.06195 135 13 10.11772 4117913 19.3701 103.776 1593 11.772) & DIE 174 1 21 7 Net (lossl/profit for the year Consolidated Statement of Financial Position as at 31 December 2020 (All amounts are in Kuwaiti Dinars) Note 2020 2019 5 Assets Non-current assets Property, plant and equipment Intangible assets Investments properties Investments in associates Financial assets at fair value through other comprehensive income Right of use assets 6 7 8 9 136,211,120 10 770,641 16,380,034 77,474,477 3,989.802 234,826, OBA 152,261,624 32,852 770,641 15,775,973 89,221,830 4,488,527 262,551,447 10 Current assets Inventories Accounts receivable and other debit balances Cash and cash equivalents 11 12 13,330,333 15,704,653 15,186, 967 44,221953 279,048,037 16,429,047 27,471,315 9,528,618 53.428.980 315,980 427 13 14 Total assets Equity and liabilities Equity Share capital Share premium Treasury shares Profits on sale of treasury shares Statutory reserve Voluntary reserve General reserve Investments revaluation reserve Group's share in associates' reserves Group's share in foreign currency exchange reserve (Accumulated losses/retained earnings Equity attributable to the Parent Company shareholders Non-controlling interests Total equity 15 16 73,330,387 26,675,810 (13,546,935) 441,409 48,270,703 42,048,346 18,930,128 (14,590,317) (176,209) 107,677 (5,606 536) 175,884,463 148,103 176,032 566 73,330,387 26,675,810 (13,546,935) 441,409 48,270,703 42,048,346 18,930,128 (2,347,295) (54,746) 95,186 15,320,862 209,163,855 163 843 209,327,698 Liabilities Non-current liabilities Loans, bank facilities and murabaha 17 Provision for employees' end of services indemnity 53,010,713 3,522,910 3.481,193 60,014,816 57,737,687 3,594,497 3,933,552 65,265,736 9 Lease liability Current liabilities Loans, bank facilities and murabaha Accounts payable and other credit balances Lease liability 17 18 9 20,530,142 22,015,137 455,376 43.000 655 103,015,471 279.048,037 18,963,851 21,983,181 439 961 41,386,993 106,652.729 315,980,427 Total Liabilities Total equity and liability . QUESTION 4) (30 pts) Using 2019-2020 financial reports of ABC, a) Calculate the followings FOR 2019 AND 2020: (14 pts - 2 pts each) - Show calculations. Receivable turnover (use Account receivables and other debit balances) Days in Receivables Inventory turnover Days in inventories Payable turnover (use Accounts payables and other credit balances) Days in payables Cash conversion cycle . . . b) Comment on the cash conversion cycle you found in (a). Do you see an improvement in cash conversion cycle from 2019 to 2020? Explain. (min 50 words, 6 pts) c) What would you suggest companies to improve their cash conversion cycles? (min. 50 words, 10 pts) mental med RATIOS Do were any other formule in your calculation Asset Turnover Sales Revenue / Total Assets Cash Conversion Cyde-Days in Receivables. Days in Inventory Days in Pwyables Current Ratio - Current Assets / Current Liabilities Days in Inventory = 360 / Inventory Turnover Days in Payables = 360 / Payables Turnover Days in Receivables 360/ Receivables Turnover Debt to Equity - Total Debt/Total Equity Equity Multiple - Total Asset / Equity Inventory Turnover Cost of Sales / Inventory Liabilities to Equity - Total Liabilities/Total Equity Net Profit Ratio - Net Income / Sales Revenue Payables Turnover - Cost of Sales / Accounts Payable Quick Ratio (Current Assets - Inventory - Prepaid Expenses/ Current Liabilities Receivables Turnover Sales Revenue / Accounts Receivable Return on Asset (ROA) = Net Income / Total Assets Return on Asset (ROA) = Net Profit Ratio Asset Turnover Return on Equity (ROE) - Net Income / Equity Return on Equity (ROE) - Return on Assets x Equity Multiple TA | Pi emporada Followings are extracted from year 2020 annual financial report of ABC company listed in fua Kuwait Consolidated Statement of income for the year ended 31 December 2020 Note 19 20 11 Sales Cost of sales Gross lossl/profit Other operating income Selling meral and administrative expenses Operating profil Provision for expected credit losses Finance charges Interest income Net investment profits Group's share of results of associates Netloss profit before deductions Contribution to Kuwait Foundation for the Advancement of Sciences National Labour Support To Satan Dan 2020 2018 43,455, 225 ELR19.157 SAMST 140PS (11.970,31 7,786,072 21 3.660 777 1408225 (15,37,241 4,186,706 14.128,693 De 244,177 DEAT 25,90 3.550 2.656.230 1105231 1.06195 135 13 10.11772 4117913 19.3701 103.776 1593 11.772) & DIE 174 1 21 7 Net (lossl/profit for the year Consolidated Statement of Financial Position as at 31 December 2020 (All amounts are in Kuwaiti Dinars) Note 2020 2019 5 Assets Non-current assets Property, plant and equipment Intangible assets Investments properties Investments in associates Financial assets at fair value through other comprehensive income Right of use assets 6 7 8 9 136,211,120 10 770,641 16,380,034 77,474,477 3,989.802 234,826, OBA 152,261,624 32,852 770,641 15,775,973 89,221,830 4,488,527 262,551,447 10 Current assets Inventories Accounts receivable and other debit balances Cash and cash equivalents 11 12 13,330,333 15,704,653 15,186, 967 44,221953 279,048,037 16,429,047 27,471,315 9,528,618 53.428.980 315,980 427 13 14 Total assets Equity and liabilities Equity Share capital Share premium Treasury shares Profits on sale of treasury shares Statutory reserve Voluntary reserve General reserve Investments revaluation reserve Group's share in associates' reserves Group's share in foreign currency exchange reserve (Accumulated losses/retained earnings Equity attributable to the Parent Company shareholders Non-controlling interests Total equity 15 16 73,330,387 26,675,810 (13,546,935) 441,409 48,270,703 42,048,346 18,930,128 (14,590,317) (176,209) 107,677 (5,606 536) 175,884,463 148,103 176,032 566 73,330,387 26,675,810 (13,546,935) 441,409 48,270,703 42,048,346 18,930,128 (2,347,295) (54,746) 95,186 15,320,862 209,163,855 163 843 209,327,698 Liabilities Non-current liabilities Loans, bank facilities and murabaha 17 Provision for employees' end of services indemnity 53,010,713 3,522,910 3.481,193 60,014,816 57,737,687 3,594,497 3,933,552 65,265,736 9 Lease liability Current liabilities Loans, bank facilities and murabaha Accounts payable and other credit balances Lease liability 17 18 9 20,530,142 22,015,137 455,376 43.000 655 103,015,471 279.048,037 18,963,851 21,983,181 439 961 41,386,993 106,652.729 315,980,427 Total Liabilities Total equity and liability . QUESTION 4) (30 pts) Using 2019-2020 financial reports of ABC, a) Calculate the followings FOR 2019 AND 2020: (14 pts - 2 pts each) - Show calculations. Receivable turnover (use Account receivables and other debit balances) Days in Receivables Inventory turnover Days in inventories Payable turnover (use Accounts payables and other credit balances) Days in payables Cash conversion cycle . . . b) Comment on the cash conversion cycle you found in (a). Do you see an improvement in cash conversion cycle from 2019 to 2020? Explain. (min 50 words, 6 pts) c) What would you suggest companies to improve their cash conversion cycles? (min. 50 words, 10 pts) mental med RATIOS Do were any other formule in your calculation Asset Turnover Sales Revenue / Total Assets Cash Conversion Cyde-Days in Receivables. Days in Inventory Days in Pwyables Current Ratio - Current Assets / Current Liabilities Days in Inventory = 360 / Inventory Turnover Days in Payables = 360 / Payables Turnover Days in Receivables 360/ Receivables Turnover Debt to Equity - Total Debt/Total Equity Equity Multiple - Total Asset / Equity Inventory Turnover Cost of Sales / Inventory Liabilities to Equity - Total Liabilities/Total Equity Net Profit Ratio - Net Income / Sales Revenue Payables Turnover - Cost of Sales / Accounts Payable Quick Ratio (Current Assets - Inventory - Prepaid Expenses/ Current Liabilities Receivables Turnover Sales Revenue / Accounts Receivable Return on Asset (ROA) = Net Income / Total Assets Return on Asset (ROA) = Net Profit Ratio Asset Turnover Return on Equity (ROE) - Net Income / Equity Return on Equity (ROE) - Return on Assets x Equity Multiple