Assignment
You are presented with the following financial report extracts for Rocky Ltd:
|
|
2015
|
2014
|
2013
|
2012
|
|
|
$
|
$
|
$
|
$
|
|
Income statement
|
|
|
|
|
|
Sales
|
370,000
|
310,000
|
270,000
|
|
|
Cost of sales
|
174,000
|
140,000
|
116,000
|
|
|
Interest
|
17,000
|
9,000
|
4,000
|
|
|
Taxation 30%
|
|
|
|
|
|
Other expenses
|
60,000
|
56,000
|
54,000
|
|
|
Statement of financial position
|
|
|
|
|
|
Current assets
|
|
|
|
|
|
Inventory
|
18,000
|
15,000
|
17,000
|
18,000
|
|
Accounts receivable
|
62,000
|
41,000
|
31,000
|
29,000
|
|
Total current assets
|
110,000
|
72,000
|
62,000
|
|
|
Non-current assets
|
|
|
|
|
|
Property, plant and equipment
|
140,000
|
120,000
|
110,000
|
|
|
Total non-current assets
|
210,000
|
190,000
|
150,000
|
|
|
Total assets
|
320,000
|
262,000
|
212,000
|
180,000
|
|
Current liabilities
|
|
|
|
|
|
Accounts payable
|
30,000
|
17,000
|
12,000
|
11,000
|
|
Total current liabilities
|
70,000
|
52,000
|
42,000
|
|
|
Total non-current liabilities
|
110,000
|
80,000
|
30,000
|
|
|
Total liabilities
|
180,000
|
132,000
|
72,000
|
|
|
Total shareholders' funds
|
140,000
|
130,000
|
140,000
|
|
Note: that there are also other current assets, non-current assets, and current liabilities that are not specifically listed in the extracts shown above.
Required:
1) Prepare a ratio analysis from the available information to cover profitability, liquidity, efficiency and capital structure.
2) Based on the above ratio analysis, prepare a report indicating potential strengths and weakness in the management of this business.
3) Identify additional information you would require to improve your analysis of this company over the period specified.
Format your assignment according to the following formatting requirements:
1. The answer should be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides.
2. The response also includes a cover page containing the title of the assignment, the student's name, the course title, and the date. The cover page is not included in the required page length.
3. Also include a reference page. The Citations and references should follow APA format. The reference page is not included in the required page length.