Preview

Caring Pharmacy Group Berhad Case Study

Good Essays
Open Document
Open Document
735 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
Caring Pharmacy Group Berhad Case Study
Company that we choose Caring Pharmacy Group Berhadused the source of financing for the purpose of raising fund for future investment projects and working capital or acquisition. Caring Pharmacy Group Berhad are preparing for the next stage of growth. The future investment project is investing in the human capital and stepped up for the recruitment for senior management and frontline staff. These projected bring the impact to the current financial year’s bottom line but Caring Pharmacy Group Berhad think that it is an essential investment to make sure the continued growth of the Group in term of long run.
Short term sources of financing
Caring Pharmacy Group Berhadused borrowing as their source of financing clearly shown in their annual report. The sources can be divided into two which are long term financing and short term financing.
There are some short term sources of financing in Caring Pharmacy Group Berhad. According to the annual report, Caring Pharmacy Group Berhad has short term bank loan with an amount of RM121, 412 in 2014. The short term bank loan is repayable within one year. When a business do not have …show more content…
Issue share capital is one of the ways for Caring Pharmacy Group Berhad to raise their funds expansion without incurring too much debt. The company had issued 35, 000,000new ordinary shares of RM1.00 each at an issue price of RM1.25 each per ordinary share for public issue and listing. The issuance of these new ordinary shares has created a share premium account of RM8, 750,000 of which RM1, 348,084 being expenses directly attributed to the issuance of these shares were written off against the share premium account. Besides, the amount of share capital is RM217, 706,400 which is include acquisition of subsidiaries (RM182, 706,397) and public issue (RM35, 000,000) while share premium is RM7, 401,916 which include premium from public issue and listing
Continue Reading
View Writing Issues

You May Also Find These Documents Helpful

  • Satisfactory Essays

    101664305 ACC421 ACC 421 Week 4 Learning Team Assignments From the Text
    • 807 Words
    • 6 Pages

    101664305 ACC421 ACC 421 Week 4 Learning Team Assignments From the Text

    depreciation 140,000 260,000 469,000 Intangible assets Patents—at cost less amortization 36,000 Total assets $1,354,200 PROBLEM 5-3 (Continued) Liabilities and Stockholders’ Equity Current liabilities Notes payable, secured by investments of $120,000 $ 94,000 Accounts due 148,000 Accrued expenditures 49,200 Total existing debts $ 291,200 Long-term liabilities 8% bonds payable, due January 1, 2018 400,000 Less: Unamortized discount on bonds due 20,000 380,000 Total debts 671,200 Stockholders’ equity Common stock Authorized 600,000 shares of $1 par value; issued and outstanding, 500,000 shares $500,000 Premium on common stock 45,000 545,000 Saved income 138,000 683,000 Total debts and stockholders’ equity $1,354,200 30 Points CA 24-2 Item 1…

    • 807 Words
    • 6 Pages
    Satisfactory Essays
    Read More
  • Powerful Essays

    Elijah Heart Center
    • 1520 Words
    • 7 Pages

    Elijah Heart Center

    The current working capital shortfall at Elijah Heart Clinic is an issue that has to be solved immediately. In order to improve the cash flow problem, I will implement two cost cutting measures and choose a loan option that will be suitable for the clinic. Even though budget is an important factor, patient care is as well. By making the necessary cuts, I will keep in mind that the quality of patient care will not be affected by the changes.…

    • 1520 Words
    • 7 Pages
    Powerful Essays
    Read More
  • Powerful Essays

    Acct1501 Exam
    • 5210 Words
    • 21 Pages

    Acct1501 Exam

    HJK Financial Solutions Ltd. issued a prospectus on Friday, 5th March 2004. The prospectus outlined the details of its Initial Public Offer. The purpose of the issue is to provide HJK with the working capital to complete its research and development work to commercialise its new financial software and expand its existing products. A summary of key information is provided below: Summary: The prospectus is for the issue of 6,000,000 ordinary shares at $1.00 each to raise $6,000,000. Oversubscriptions of a further 1,000,000 ordinary shares at $1.00 each to raise a further $1,000,000 may be accepted. The minimum subscription to be raised pursuant to the prospectus is $5,000,000. No shares will be allotted or issued until the minimum subscription has been received. The sponsoring broker will be paid a fee of 4% of the amount subscribed (and accepted by the company). The following are the accounts under the heading Owners’ Equity and are taken from the consolidated Statement of Financial Position in the prospectus issued by HJK Financial Solutions Ltd. Owners’ Equity Consolidated 28th Feb 2004 $ 2,875,000 (18,557) 2,084,119 4,940,562…

    • 5210 Words
    • 21 Pages
    Powerful Essays
    Read More
  • Satisfactory Essays

    Pro Forma Statement Analysis
    • 575 Words
    • 3 Pages

    Pro Forma Statement Analysis

    In order to create an initiative for growth, an analysis of the company 's short term and long term financing needs are assessed to determine strategies for the company to manage working capital. The suggested initiative to increase XYZ Company, Inc. revenue over the next five years is by acquiring assets through a merger with UVW Company to produce more of product X. Companies must be able to manage growth either through the acquisition of assets or through the capital budgeting process. Through the acquisition of assets, external financing will be required. Growing quickly will allow XYZ Company to gain a larger market share and reinforce its viable position in the marketplace. Expanding too rapidly can have consequences. If the company has too much debt-financing and cash flows are reduced the company will risk being unable to repay its debts. Management must ensure the business can grow, what funding may be needed, and determine the sustainable growth rate.…

    • 575 Words
    • 3 Pages
    Satisfactory Essays
    Read More
  • Powerful Essays

    Scott Equipment Organization Paper
    • 1379 Words
    • 6 Pages

    Scott Equipment Organization Paper

    Short-term financing is usually used for a term of six to twelve months. It is typically used to increase the company’s amount of available working capital. This in turn assists the company in having the ability to buy a much needed piece of equipment or to pay utilities and suppliers. In this exercise, we were given the following table of financial information to assist in the determination of the best financing choice.…

    • 1379 Words
    • 6 Pages
    Powerful Essays
    Read More
  • Better Essays

    Stock and Shares of Merck & Co., Inc. and GlaxoSmithKline plc
    • 904 Words
    • 5 Pages

    Stock and Shares of Merck & Co., Inc. and GlaxoSmithKline plc

    v. Share capital is the amount of stock the company has purchased by trading stock to a shareholder. Share premium is the amount the stock is sold when the allocation price is more than par value. Merck calls these accounts on their GAAP balance sheet common stock and other paid-in capital.…

    • 904 Words
    • 5 Pages
    Better Essays
    Read More
  • Good Essays

    Cost Accounting Cc2 Unit 2
    • 2988 Words
    • 12 Pages

    Cost Accounting Cc2 Unit 2

    Operating cash flow before working capital changes has largely fluctuated, increasing to a peak in 2006 and falling again. The highest point can be observed in 2008. Finance costs have decreased in 2008 by almost half. Stores and stocks increase at a steady rate but show a spike in 2008. Trade debts reach a peak in 2006 and then fluctuate. Other receivables, however, show an increase. Net cash from operating activities shows a peak in 2006. The greatest addition to plant, property and equipment is witnessed in 2008. Net cash used in investing activities reaches a peak t 2008. Net cash used in financing activities shows an upward trend with a peak in 2008. Cash and cash equivalents show a peak in 2008, with a smaller peak in 2006. *CC5 FIVE-YEAR GROWTH RATES Sales and net-income have increased over the years but the per-share results are different because the number of shares goes up considerably in 2008, reducing per-share values and making growth rates negative. No dividends were paid in the first two years and as a result, the growth in dividends per share has been 100%. Equity per share has shown a growth over the years. Issuing more shares has resulted in lower sales and net income per share. The negative effect is especially felt on net income per share. This is not a good sign for the company, as it will negatively affect share prices financial markets. Financing the expansion in 2008 with a growth in equity seems to have been an unreasonable…

    • 2988 Words
    • 12 Pages
    Good Essays
    Read More
  • Better Essays

    Walgreens: the Corporate Financial Decision Making Analysis
    • 1077 Words
    • 5 Pages

    Walgreens: the Corporate Financial Decision Making Analysis

    The capital structure of this retail drugstore is determined by 42,5% Debt and 57,50% Equity due to $8.239 of the total debt and $11,104,30 of Equity resulting in $19,313.60 of Total Liabilities and Shareholders’ Equity for 2007. Among the main debt-financing sources, Walgreens has different letter of credits standing since 2006 to guarantee foreign trade purchases, payments of casualty claims as well as performance of construction contracts. The letters of credits for payments of casualty claims are annually renewable and until the casualty claims are paid in full, they might remain in place.…

    • 1077 Words
    • 5 Pages
    Better Essays
    Read More
  • Good Essays

    Caregroup Case Study Summary
    • 572 Words
    • 3 Pages

    Caregroup Case Study Summary

    CareGroup was formed in a three way merger of hospitals in 1996, becoming a health-care team dedicated to providing personalized care to patients through a broad spectrum of available services. The merger was precipitated by increased need for negotiating and contracting power to respond to the HMOs, the possibility of developing integrated services to improve quality of care while driving down costs and the need for a strong balance sheet. The hospitals involved in the merger had experienced recent losses under their own separate management and the merger brought financial stability and central leadership.…

    • 572 Words
    • 3 Pages
    Good Essays
    Read More
  • Good Essays

    Rogers Communication Inc. And Telus Corporation: Financial Analysis
    • 4849 Words
    • 20 Pages

    Rogers Communication Inc. And Telus Corporation: Financial Analysis

    Management of financing and sources of capital: how well do the companies manage short-term and long-term borrowings?…

    • 4849 Words
    • 20 Pages
    Good Essays
    Read More
  • Good Essays

    Business Enviroment Assignment 1
    • 708 Words
    • 3 Pages

    Business Enviroment Assignment 1

    The purpose of this company is that it delivers high quality medical drugs and health care which is proscribed by a doctor or a medical consultant. Medical care is given either paid or free depending on financial status or education.…

    • 708 Words
    • 3 Pages
    Good Essays
    Read More
  • Satisfactory Essays

    Simulation Report
    • 1501 Words
    • 5 Pages

    Simulation Report

    Sunflower Nutraceuticals (SNC), is a privately held nutraceuticals – a wide distributor which provides all the vital dietary supplements such as herbs for women’s, vitamins, and minerals for all the consumers (mainly women’s), distributors and retailers. They are struggling to break even, with relatively flat annual sales growth and thin margins. SNC generates $ 10 million in revenues and holds a large selection of SKU’s of around 50 third party brands. They held cash reserves of $ 300,000 at all times to meet its operational needs. They have a credit line facility with a limit of $ 3,200,000 with 8% interest rate. The cost of capital for SNC is 12%.…

    • 1501 Words
    • 5 Pages
    Satisfactory Essays
    Read More
  • Good Essays

    Clarkson Lumber Co.
    • 446 Words
    • 2 Pages

    Clarkson Lumber Co.

    A. This company now faced the cash shortage trouble which we can see from its liquidity, such as current ratios, quick ratios and return on sales for these three years, following a decreasing trend. From accounts receivable statistics, we learn the cash inflows is decreasing since it takes longer time to collect the money from customers. And they still need to pay for purchases, so borrowing from banks can destress the cash shortage pressure and expand their sales to a new extent.…

    • 446 Words
    • 2 Pages
    Good Essays
    Read More
  • Better Essays

    Working Capital Management in Healthcare
    • 1505 Words
    • 7 Pages

    Working Capital Management in Healthcare

    Working capital is the money required to finance the day to day operations of an organization. Working capital may be required to bridge the gap between buying of stocked items to eventual payment for goods sold on account. Working capital also has to fund the gap when products are on hand but being held in stock. Products in stock are at full cost, effectively they are company cash resources which are out of circulation therefore additional working capital is required to meet this gap which can only be reclaimed when the stocks are sold (and only if these stocks are not replaced) and payment for them is received. Working capital requirements have less to do with profitability and much more to do with cash flow. Within the context of this paper, we will review three current articles that deal with specific issues related to the management of working capital.…

    • 1505 Words
    • 7 Pages
    Better Essays
    Read More
  • Powerful Essays

    Islamic Finance
    • 1070 Words
    • 5 Pages

    Islamic Finance

    ABC Services is holding 1 million shares of Rs.100 each as its total Net worth. The company decided to obtain working capital financing under Musharka mode of financing by liquidating 30% of its shares to Bank Muslim for 5 years terms. During the period company reported result Profit & Loss of (Rs.250,000), (410,000), Rs.355,000, Rs.750,000 & 810,000. In the fifth year the company buyout the entire shares from the Bank Muslim at prevailing…

    • 1070 Words
    • 5 Pages
    Powerful Essays
    Read More

Related Topics