The completed report should include:

A financial statement review.

Pro Forma financial statements (Balance Sheet and Income Statement) for the next two fiscal years, assuming a 10% growth rate in sales and Cost of Goods Sold (COGS) for each of the next two years.

A ratio analysis for the last fiscal year using at least two ratios from each of the following categories:

a. Liquidity b. Financial leverage c. Asset management d. Profitability e. Market value

Calculate Return on Equity (ROE) using the DuPont system.

Assess management performance by calculating Economic Value Added (EVA).

Evaluate the soundness of the companys financial policies (e.g. capital structure, debt, leverage, dividend policy, etc.) based on the material covered during class.

A synopsis of your findings, including your recommendations and rationale for whether or not to purchase stock from this company.

		Q1 15	Whole Year	2016	2017
			*12
Sales		8,214.00	98,568.00	108,424.80	119,267.28
Cost of goods		-4,365.00	-52,380.00	-57,618.00	-63,379.80
Gross Profit		3,849.00	46,188.00	50,806.80	55,887.48
Royalty & commission income	Assumed growth 10%	37.00	444.00	488.40	537.24
Other operating income & expenses	Assumed fixed except for 5% inflation growth	-3,511.00	-42,132.00	-44,238.60	-46,450.53
EBIT		375.00	4,500.00	7,056.60	9,974.19
Income from Associated company	Assumed 10%	9.00	108.00	118.80	130.68
EBIT		384..00	4,608.00	7,175.40	10,104.87
Taxes on income		-108.00	-1,296.00	-2,018.08	-2,841.99
Net earnings to non-controlling interest		-28.00	-336.00	-523.21	-736.81
Balance Sheet
Assets		Q1 2015	Rep as % sales	2016	2017
Sales			98,568.00	108,424.8	119,267.28
Cash & Cash equil.		2,950.00	3%	3,245.00	3,569.50
Inventories		6,480.00	6.6%	7,128.00	7,840.80
Trade Receivables		5,964.00	6.1%	6,560.40	7,216.44
Other current assets (working capital)		2,003.00	2%	2,203.30	2,423.63
Other current assets		1,045.00	1.1%	1,149.50	1,264.45
Current assets		18,442.00	18.7%	20,286.20	22,314.82
Deferred tax assets		1,954.00	2%	2,149.40	2,364.34
Other non-current assets		7,340.00	704%	8,074.00	8,881.40
Non-current assets		9,294.00	9.4%	10,223.40	11,245.74
Total Assets		27,736.00	28.1%	30,509.60	33,560.56
Liabilities & Equity
Current financial liabilities		599.00	0.6%	658.90	724.79
Trade payable		4,667.00	4.7%	5,133.70	5,647.07
Other current liabilities (working capital related)		2,332.00	2.4%	2,565.20	2,821.72
Other current liabilities		1,516.00	1.5%	1,667.60	1,834.36
Current liabilities		3,114.00	9.2%	10,025.40	11,027.64
Deferred taxes		698.00	0.7%	767.80	844.58
Pension provisions		270.00	0.3%	297.00	326.70
Other non-current liabilities		281.00	0.3%	309.10	340.01
Non-current liabilities		1,249.00	1.3%	1,373.90	1,511.29
Shareholder equity		17,373.00	17.6%	19,110.30	21,021.33
Total		27,736.00	28.1%	30,509.60	33,560.56