Select a company listed on the stock exchange from an industry of your choice. As a financial journalist, you have been asked to write an article evaluating profitability, liquidity for the past 3 years. Using appropriate ratios, commenting on trends observed. Include a table of key financial data as an appendix.
You must answer the following questions.
a) Discuss the nature of the companies and their backgrounds. (10 Marks)
b) Compare and contrast the following items on the financial statements.
i) Retained profitsii) Bank overdraft
iii) Tangible non-current assets
iv) Trade payables
v) Trade receivables (20 Marks)
c) What is a cash flow statement. Interpret the statement of cash flows and identity any cash flow problems. (20 Marks)
d) Explain the company’s short and long term financing (10 points)
e) Using six ratios to analyse the company’s performance in relation to profitability and liquidity. Besides, comment on how your analysis compare with the impression provided by the narrative elements of annual report. (20 Marks)
f) In today’s business environment, ethical behaviourand practice have become an essential aspect of any organisation. Discuss. (20 Marks)