Reference no: EM132644088
FIN501 Financial Management Assignment - SolBridge International School of Business, South Korea
Question - You are to study the following financial statements for two furniture stores and then answer the question which follow.
Financial Statements
A B
000 000 000 000
Income Statements
Sales 2,500 1,600
Opening Inventory 190 110
Add Purchases 2,100 1,220
Less Closing Inventory (220) (2,070) (160) (1,170)
Gross profit 430 430
Less;
Directors remuneration 70 120
Wages and salaries 180 130
Other expenses 14 (264) 10 (260)
Net profit 166 170
Statement of financial position
Non-current assets
Equipment at cost 264 98
Less Acc. depreciation (106) 158 (36) 62
Current Assets
Inventory 220 160
Accounts receivable 104 29
Bank 75 399 10 199
Total Assets 557 261
Share capital 200 100
General reserve 68 35
Retained profit 100 88
368 223
Current liabilities
Accounts payable 189 38
Total Capital and current liabilities 557 261
Required - After calculating appropriate ratios, prepare report that comments on the recent performance and financial health of the two companies.