User Account

All Pages

Distinguish between trend analysis and peer group analysis

Assignment Help Accounting Basics
Reference no: EM133041792

QUESTION - UBK Auto Accessories Manufacturing Sdn Bhd. manufactures automobile spare parts and accessories which inclusive car battery, spark plug, steering wheel covers, fuel consumption meters, window tint, stereo system, DVD players, floor mats and even air fresheners. The firm is being financed by debt as well as equity. The business was established since the year 2001 in the industry. At present, the Board of directors would like to analyze the business from the perspective of internal and sustainable growth. The purpose of the analysis is to explore more opportunities in the industry and to ensure the sustainability of the business. The most recent year (2019) financial data extracted from the financial report of Rainbow Manufacturing Sdn Bhd are as follows:

ITEM

RM

Sales

658,000

Current Assets

205,000

Costs

212,800

Fixed Assets

665,000

Debt

310,000

Equity

554,000

Tax

35%

Number of shares outstanding

27,000

Assets and costs are proportional to sales. Debt and equity are not proportional to sales. The company maintains a constant 35 percent dividend payout ratio. No external financing is possible.

Required -

(a) Assume you as the financial manager for UBK Auto Accessories Sdn Bhd. being assigned by the Board of directors to perform financial analysis by computing debt ratio, debt equity ratio, earning per share, capital intensity ratio, internal and sustainable growth rate for the business.

(b) Distinguish between trend analysis and peer group analysis in analyzing financial statements.

Reference no: EM133041792

Questions Cloud

Describe the importance of the leadership domains : Describe the importance of each of the leadership domains: communication and relationship management, professionalism, knowledge of the healthcare environment,
Prepare journal entry Philcorp would make to record sale : Immediately before the sale, the shareholders' equity of Anderco amounted to $550,000. Prepare journal entry Philcorp would make to record sale
Strategic thinking and business acumen : Workforce planning is an area that requires strategic thinking and business acumen. Let's start by looking outside for examples to assess business strategies an
Risk assessment for a vulnerable young person : Complete a risk assessment for a vulnerable young person as per scenario provided - critical understanding of youth justice system considerations
Distinguish between trend analysis and peer group analysis : Assets and costs are proportional to sales. Distinguish between trend analysis and peer group analysis in analyzing financial statements
Best plan of action of the chosen functional area : Choose an organization. Acting as an HR consultant pitch what services your could provide to the organization.
What is the future of performance appraisals : What is the future of performance appraisals and why some companies are getting rid of them entirely
Explain the improvement in work performance : Explain how you would co-ordinate individual or group learning to support your colleagues or line managers either having identified a skill gap or to ensure imp
What type of research questions can be developed : What type of research questions can be developed when examining a research project topic of this nature

Reviews

Write a Review

Accounting Basics Questions & Answers

  Determine the margin of safety as a percentage

Determine the margin of safety as a percentage for each product

  What is the contribution margin per unit

Monthly fixed costs are $26,000. The hammer cost is the only variable cost, What is the contribution margin per unit

  Compute the current ratio at year end

Using The Boeing Company Annual Report, answer the following questions in the Discussion: Compute the current ratio at year end

  How should the investor account for this change

How should the investor account for this change in accounting method?

  Calculate the pay back period and net present value

Assume there is no need for additional investment in building the land for the project. The firm's marginal tax rate is 35%, and its cost of capital is 10%.

  This year how should skinner account for the potential

1. potential costs due to the discovery of a possible defect related to one of its products. these costs are probable

  What costs should be assigned to machines

In addition, Commander paid $12,000 to have the machines installed. What costs should be assigned to Machines A, B, and C, respectively

  When we considered the cost of capital and the cost of

when we considered the cost of capital and the cost of financing we spoke of several types of accounts. consider these

  Calculate the balance of the provision for warranty

The provision for warranty has a credit balance of $145,000 at the beginning of 2019. Calculate the balance of the provision for warranty at December

  The irs is conducting a transfer pricing examination of

the irs is conducting a transfer pricing examination of usaco a wholly-owned u.s. subsidiary of forco. usaco purchases

  What is the impact if the airline now repatriates

What is the impact if the airline now repatriates the total funds to the U.S. at the Venezuelan government's official rate of 50 bolivars per dollar.

  What is the purpose of closing journal entries

What is the equation for each of the following statements: (a) income statement, (b) statement of owner's equity, and (c) balance sheet?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd