CLASS EXERCISE Highland Question On Financial Statement Analysis
UNIVERSITY OF PROFESSIONAL STUDIES, ACCRA
LEVEL 200- Mainstream
Course: Business Finance Course code: PBBS 208 Year: 2014/2015
Practical Question on Financial Statement Analysis
CLASS EXECIRSE..................................................................................................................
Highland is a brewing company, which has been in existence over the years. With your finance background, a friend has approach you with the interest to invest in the company. Presented below is the financial statement for Highland.
Required:
You are required to calculate and interpret all relevant ratios for Highland Company Limited, stating all assumptions made and showing all workings to assist your friend in making his decision.
Highland Company Limited
Statement of Profit And Loss & Other Comprehensive Income for the year ended 30th June 2012
2012
(GH¢ '000)
2011
(GH¢ '000)
Revenue
321,017
292,318
Cost of Sales
(228,793)
(192,923)
Gross Profit
92,224
99,395
Advertising and marketing expenses
(28,986)
(24,895)
Administrative expenses
(13,350)
(14,022)
Other expenses
(20,810)
(20,197)
Other Income
2,085
339
Results from operating activities
31,163
40,620
Finance income
815
354
Finance cost
(4,110)
(7,757)
Profit before taxation
27,868
33,217
Income tax expense
(9,591)
(8,212)
Profit for the year
18,277
25,005
Other comprehensive income
Other comprehensive income for the year
640
(445)
Total comprehensive income for the year
18,917
24,560
Highland Company Limited
Statement of Financial Position as at 30th June 2012
ASSETS
2012
GH¢'000
2011
GH¢'000
Property, plant and equipment
225,900
161,329
Intangible assets
3,154
3,615
Total non-current assets
229,054
164,944
Inventories
45,108
33,537
Trade and other receivables
11,109
9,051
Amounts due from related companies
1,201
887
Cash and cash equivalents
11,519
35,390
Income tax asset -
290
Total current assets
68,937
79,155
Total assets
297,991
244,099
LEVEL 200- Mainstream
Course: Business Finance Course code: PBBS 208 Year: 2014/2015
Practical Question on Financial Statement Analysis
CLASS EXECIRSE..................................................................................................................
Highland is a brewing company, which has been in existence over the years. With your finance background, a friend has approach you with the interest to invest in the company. Presented below is the financial statement for Highland.
Required:
You are required to calculate and interpret all relevant ratios for Highland Company Limited, stating all assumptions made and showing all workings to assist your friend in making his decision.
Highland Company Limited
Statement of Profit And Loss & Other Comprehensive Income for the year ended 30th June 2012
2012
(GH¢ '000)
2011
(GH¢ '000)
Revenue
321,017
292,318
Cost of Sales
(228,793)
(192,923)
Gross Profit
92,224
99,395
Advertising and marketing expenses
(28,986)
(24,895)
Administrative expenses
(13,350)
(14,022)
Other expenses
(20,810)
(20,197)
Other Income
2,085
339
Results from operating activities
31,163
40,620
Finance income
815
354
Finance cost
(4,110)
(7,757)
Profit before taxation
27,868
33,217
Income tax expense
(9,591)
(8,212)
Profit for the year
18,277
25,005
Other comprehensive income
Other comprehensive income for the year
640
(445)
Total comprehensive income for the year
18,917
24,560
Highland Company Limited
Statement of Financial Position as at 30th June 2012
ASSETS
2012
GH¢'000
2011
GH¢'000
Property, plant and equipment
225,900
161,329
Intangible assets
3,154
3,615
Total non-current assets
229,054
164,944
Inventories
45,108
33,537
Trade and other receivables
11,109
9,051
Amounts due from related companies
1,201
887
Cash and cash equivalents
11,519
35,390
Income tax asset -
290
Total current assets
68,937
79,155
Total assets
297,991
244,099