考文垂大学 商科课程 财务报表分析 比率分析课堂问题.docxVIP

M17EFARatio analysisSeminar questionsExercise 1 - L LimitedThe directors of L Ltd appointed a new sales manager towards the end of 20X2. This manager devised a plan to increase sales and profit by means of a reduction in selling price and extended credit terms to customers. This involved considerable investment in new machinery early in 20X3 in order to meet the demand which the change in sales policy had created.The financial statements for the years ended 31 December 20X2 and 20X3 are shown on the next page. The sales manager has argued that the new policy has been a resounding success because sales and, more importantly, profits have increased dramatically.You are required to explain whether you believe that the performance for the year ended 31 December 20X3, and the financial position at that date have improved as a result of the new policies adopted by the company. You should support your answer with appropriate ratios.Income statement20X2 20X3￡000￡000Sales RevenueCost of sales900(360)2,800(1,680)Gross profitSelling expensesBad debtsDepreciationInterest540(150) (18)(58)(12)1,120(270)(140)(208)(192)Net profitRetained earningsb/f302327310629Retained earnings c/f629939Statement of financial position20X220X3￡000￡000￡000￡000Non current assetsFactoryMachinery4504904411,7919402,232Current assetsInventoryReceivablesBank308312238583-1258211,0653,053Equity and reservesShare capitalRetained earnings3006293289399291,267Non current LiabilitiesLong term borrowings1001,600Current liabilitiesPayablesBank360653,053Exercise 2 - Robovert plc (December 2005 exam updated)You work for Robovert plc. You have been asked to prepare a report for your supervisor on how the performance of Robovert plc compares with other similar companies. Your supervisor does not wish to read a lengthy report and has indicated that ‘about a couple of pages identifying clearly the main issues’ are required.You obtain the most recent financial statements of Robovert plc and three of it