Question
The following information relates to KK ltd, a company listed at NSE. The sharehoders are note sure of the overall performance hence they need more
The following information relates to KK ltd, a company listed at NSE. The sharehoders are note sure of the overall performance hence they need more understanding about the companys position. You have been appointed as the financial analyst and the following financial statements have been provided to you for the year ended 31st Dec 2019 The balance sheet , As at 31st Dec 2019 Fixed Assets Ksh. 000 Intangible 123,000 Tangible 2,079,500 Investments 10,000 2,212,500 Current Assets Stocks 479,000 Debtors 1,774,500 Cash and short-term investments 5,000 2,258,500 Current liabilities Trade creditors 956,500 Bank overdraft 504,000 Other curent liabilities 152,500 1,613,000 Net working capital 645,500 Total assets 2,858,000 Long-term Loans 124,000 Other long-term liabilities 33,000 total non-current liabilities 157,000 Income statement of Tribulations Limited for the year to December 31 2019 Ksh.000 Sales revenue 1,900,000 Less: Cost of Sales (880,000) Gross Profit 1,020,000 Less: operating Expense (270,000) Earnings before interest and taxes 750,000 Interest Expense (130,000) Profit before tax 620,000 Less: Income Tax Expense (92,000) Profit after tax 528,000 Less: proposed dividends (23,500) Retained earnings 504,500 As a financial analyst, make a report on the overall Required: Make a comprehensive report to the shareholders of the company with justifications and comment the possible recommendations on how they can improve the company better(
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