Show the statement of financial position, Financial Management

Assignment Help:

A friend is looking for advice on one of his investments, KER. KER manufactures stationery supplies, the entity appointed a new Chairman in 2008 and since then has been executed an expansion strategy aimed at pursuing new markets with its active product base.

In the 2009 annual report The Chairman's report included and announces the success of the expansion plan, citing increased returns and profits as evidence of the entity's success, and noting that the entity has invested in non-current assets to ensure returns continues to increase. Your friend is intending to hold his investment in KER based on the positive chairman's report but has asked you to consider the monetary information to assess whether the figures support the chairman's claims.

The statement of financial position as at 31 December 2009 and its comparative is shown below:

2009

2008

$m

$m

ASSETS

Non-current assets

Property, plant and equipment

480

404

Investment in associate

177

-

Available for sale investments

150

140

807

544

Current assets

Inventories

145

65

Receivables

247

134

Cash and cash equivalents

-

22

392

221

Total assets

1,199

765

EQUITY AND LIABILITIES

Equity

Share capital

100

100

Revaluation reserve

74

32

Other reserves

32

22

Retained earnings

457

333

Total equity

663

487

Non-current liabilities

Loans

400

210

Current liabilities

Payables

99

68

Overdraft

37

-

136

68

Total liabilities

536

278

Total equity and liabilities

1,199

765

 


Related Discussions:- Show the statement of financial position

The standard contribution rate and actuarial liability, Question 1: Giv...

Question 1: Give the formulae for the Standard Contribution Rate (SCR) and Actuarial Liability (AL) for each of the following funding methods: a) Credit Unit Method b)

Calculate the break-even point, A Video Rental store has two employees. The...

A Video Rental store has two employees. The Supervisor is paid $2,200 per month. The other employee, Mark is paid $1,200 per month. In addition, Mark is paid a commission of 20 cen

Determine the no-arbitrage price, 1.  Suppose Bank one offers a risk free i...

1.  Suppose Bank one offers a risk free interest rate of 5.5% on both savings and loans, and Bank Enn offers a risk free interest rate of 6% on both savings and loans. What arbitra

Determine the factors of large organisations, Determine the factors of Larg...

Determine the factors of Large organisations -  Greater efficiency and productivity achieves economies of scale -  Easier to manage, organise and control workers through hie

What is installment credit, Q. What is Installment Credit? This is anot...

Q. What is Installment Credit? This is another method by which the assets are purchased and the possession of goods is taken immediately but the payment is made in installments

Calculate the revenue - operating cost, Chrysler decides to avoid the probl...

Chrysler decides to avoid the problems associated with exporting autos to Japan by building a plant in Japan. The cost is expected to be $1 billion with $500 million to be spent no

Define forward exchange rate will be an unbiased predictor, Explain the con...

Explain the conditions under which the forward exchange rate will be an unbiased predictor of the future spot exchange rate. Answer:  the conditions when forward exchange rate

Risks and advantage when a company has operation in country, What are some ...

What are some of the primary advantages when a corporation has operations in countries other than its home country?  What are some of the risks? Foreign operations may decrease a

Personnel characteristics, Workers interest in participation is also influe...

Workers interest in participation is also influenced by certain personnel or group characteristics. For example several research studies have shown that both very low and very high

Write Your Message!

Captcha
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!

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