Reference no: EM133051341
Marlou's Garments, Inc. posted the following financial data extracted from its record to be presented and discussed in the Board Meeting:
Balance Sheet ( In Million Ph)
2020 2019
Assets
Cash & It's Equivalent 120 190
Account receivables 80 60
Inventories 170 130
Investments 25 10
Fixed Assets (Net) 400 300
Total Assets 795 690
Liabilities & Equity
Accounts Payable 75 70
Other Payables 95 65
Long Term Debt 50 35
Total Liabilities 220 170
Stockholder's Equity
Capital Stock, par P10,
Authorized 50M shares,
30M Issued 300 300
Retained Earnings 275 220
Total Liabilities &
Stockholder's Equity 795 690
Income Statement
Net Sales 1,180 1,130
Cost of Goods Sold 905 880
Gross Margin 275 250
Operating Cost 105 95
Net Income from
Operation 270 155
Provision for Income tax 81 46
Net Income 189 109
Earnings per share 6.3 3.6
Required:
1. To analyze the company's performance for the year 2020 using ratios and analysis i.e.
a.) profitability
b.) Liquidity
c.) Activity and others, if applicable.
2. What areas of improvements to recommend based on analysis?