Use the fianacial statement of Fan Milk Ghana Ltd for 2014 ,2015 and 2016 and

Write a report to the Managing Director on the financial performance of the company for the 2016 and 2015 financial years using:

a) Horizontal basis

b) Vertical basis

Ratio analysis. The report on the ratio analysis must use the subheadings below. Your report must be guided by the ratios listed under the various subheadings listed below.

c) Profitability and return

i ) return on capital employed

ii) Profit margin

iii) Asset turnover

d) Long-term solvency and stability

i) gearing ratio

e) liquidity

i) Current ratio

ii) inventory turnover period

iii) Accounts receivable collection period

iv) Accounts payable payment period

f) Shareholders' investment ratios

i) Earnings per share

ii) Dividend per share

STATEMENT OF FINANCIAL POSITION
	2016	2015	2014
Assets:
Non-Current Assets
Property, plant & equipment	155,389.00	61,865.00	60,801.00
Intangible assts	580.00	120.00	271.00
	155,969.00	61,985.00	61,072.00
Current Assets
Inventories	51,769.00	47,383.00	19,788.00
Trade and other receivable	11,064.00	7,175.00	5,823.00
Cash and cash equivalent	26,262.00	97,671.00	37,230.00
	89,095.00	152,229.00	62,841.00
Total Assets	245,064.00	214,214.00	123,913.00
Equity and Liability
Equity attributable to owners
Stated capital	10,000.00	10,000.00	10,000.00
Income surplus account	164,379.00	110,278.00	71,021.00
	174,379.00	120,278.00	81,021.00
Liabilities
Non-Current Liabilities
Deferred income tax	7,649.00	6,907.00	6,050.00
Current Liabilities
Trade and other payable	59,168.00	84,097.00	34,390.00
Current income tax	614.00	207.00	-
Dividend payable	3,254.00	2,725.00	2,452.00
	63,036.00	87,029.00	36,842.00
Total Liabilities	70,685.00	93,936.00	42,892.00
Total Equity and Liabilities	245,064.00	214,214.00	123,913.00