Finanzas

La Trobe University
Graduate School of Management

Financial and Management Accounting
Lecturer: Mr. Costa Englezos

[15923791] ANCHUNDIA VALENCIA, Carlos Eduardo [15923609] BALDA ANDRADE, Juan Pablo [16000226] RAMON NARANJO, Galo Bladimir [15923822] YAMBAY QUISHPE, Byron Paul

7/03/2011

Part I - Question 1, 2 & 3

Part I
1. Company's Profit/Loss Information
Item Sales revenueEBIT Borrowing costs Net Profit after Tax (NPAT) 2008 2009 2010 2,321.70 2,600.30 2,976.10 167.70 (162.30) 90.50 (27.30) (63.90) (56.20) 97.70 (160.00) 21.30

2. Company's Balance Sheet Information
Item Receivables Inventories Current assets Total assets Current liabilities Total liabilities Paid Up Capital Retained Profits Reserves 2007 2008 2009 2010 74.30 108.50 122.30 141.40 0.40 0.60 805.10924.20 611.80 992.70 2,305.70 3,337.90 3,366.90 3,871.90 731.80 1,055.70 1,158.90 1,308.90 1,562.20 2,412.60 2,789.80 2,938.60 405.30 406.20 407.70 632.50 387.30 443.30 283.30 304.60 (49.10) 75.80 (113.90) (3.80)

3. Company's Cash Flow
Information
Items Net cash flow from operating activities Net cash flow from investing activities Net cash flow from financing activities Cash at start Cash atend 2008 2009 2010 293.60 101.10 369.20 (995.20) (561.70) (271.10) 604.70 334.60 241.90 704.00 603.90 475.90 603.90 475.90 814.70

Comment
The most remarkable aspect during 2008 was the investments where focused on new initiatives of the company such as "VAustralia". By 2009, the company was not exempted of the results of the global financial crisis (GFC) which is appreciated on the diminish ofoperating activities compared to the previous year as well as the putting on operation of VAustralia. On 2010, the revenues produced by VAustralia helped to increase the operating activities and the financing activities were influenced by a rising of capital .

FMA Major assignment

Term 1 2011

2/9

Part I - Question 4

4. Financial ratios
Ratios Return on Equity Return on Assets(using EBIT) Return on Sales / Profit Margin (using EBIT) Asset Turnover Debtors Turnover (in months) Stock Turnover (in months) Current / Working Capital Ratio Quick / Acid Test Ratio Debt Ratio Interest Coverage Ratio Formula = NPAT / Avg Owner's Equity = EBIT / Avg Assets = EBIT / Sales = Sales / Avg Assets = Sales / Avg Receivables = Cost of Sales / Average Stock = Current Assets / CurrentLiabilities = C.A. - Stock - Prepayments/ C.L. - Bank Overdraft = Total Liabilities / Total Assets = EBIT / Interest 2008 Answer 11.7% 5.9% 7.2% 82.3% 2.1 87.5% 87.5% 72.3% 614.3% Workings = 97.7 / Avg(743.5 + 925.3) = 167.7 / Avg(2305.7 + 3337.9) = 167.7 / 2321.7 = 2321.7 / Avg(2305.7 + 3337.9) = 2321.7 / Avg(74.3 + 108.5) = 924.2 / 1055.7 = (924.2 - 0.6 - 0) / (1055.7 - 0) = 2412.6 / 3337.9 = 167.7 /27.3 2009 Answer2 -21.3% -4.8% -6.2% 77.6% 1.9 52.8% 52.8% 82.9% -254.0% Workings3 = -160 / Avg(925.3 + 577.1) = -162.3 / Avg(3337.9 + 3366.9) = -162.3 / 2600.3 = 2600.3 / Avg(3337.9 + 3366.9) = 2600.3 / Avg(108.5 + 122.3) = 611.8 / 1158.9 = (611.8 - 0 - 0) / (1158.9 - 0) = 2789.8 / 3366.9 = -162.3 / 63.9 2010 Answer4 2.8% 2.5% 3.0% 82.2% 1.9 75.8% 75.8% 75.9% 161.0% Workings5 = 21.3 / Avg(577.1 +933.3) = 90.5 / Avg(3366.9 + 3871.9) = 90.5 / 2976.1 = 2976.1 / Avg(3366.9 + 3871.9) = 2976.1 / Avg(122.3 + 141.4) = 992.7 / 1308.9 = (992.7 - 0 - 0) / (1308.9 - 0) = 2938.6 / 3871.9 = 90.5 / 56.2

FMA Major Assignment

Term 1 2011

3/9

Part I - Question 5

5. Ratio analysis
Profitability ratio trends

Profitability
20.0%
10.0%

0.0% -10.0% -20.0% -30.0% Return on Sales /Profit Margin (using EBIT) Return on Equity
Return on Assets (using EBIT)

2008

2009

2010

The ability to generate earnings versus the expenses incurred decreased in 2009 due to a increment in operating expenses and in ineffective and non designated derivatives. In 2010 there was a clear upward trend because of better results in sales and profit.

Liquidity ratio trends

Liquidity...