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Ketzie Kord Financial Analysis Workshop

The document provides the balance sheet and income statement for Ketzie Kord Plc for the years 2013, 2014, and 2015. It also includes additional financial details like market share prices, inventory analysis, staffing levels, and dividend payments. The required tasks are to: (1) calculate financial ratios for the 3 years, (2) create diagrams depicting the ratio trends, and (3) perform a trend analysis and discuss factors affecting the ratios.

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Linh Nguyễn
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55 views2 pages

Ketzie Kord Financial Analysis Workshop

The document provides the balance sheet and income statement for Ketzie Kord Plc for the years 2013, 2014, and 2015. It also includes additional financial details like market share prices, inventory analysis, staffing levels, and dividend payments. The required tasks are to: (1) calculate financial ratios for the 3 years, (2) create diagrams depicting the ratio trends, and (3) perform a trend analysis and discuss factors affecting the ratios.

Uploaded by

Linh Nguyễn
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOC, PDF, TXT or read online on Scribd

Fundamentals of

Finance
UMACTA-30-M

Workshop for L2: Financial Statement Analysis

The following information relates to Ketzie Kord’s financial statements for the last 3
years:
Balance sheet for Ketzie Kord Plc (£000)
2013 2014 2015
Net fixed assets 2,581 4,430 4,364
Cash 561 387 202
Receivables 1,963 2,870 4,051
Inventory 2,031 2,613 3,287
Current assets 4,555 5,870 7,540
Total assets 7,136 10,300 11,904
Payables 1,862 2,944 3,613
Accruals 301 516 587
Bank loan 250 900 1,050
Current liabilities 2,413 4,360 5,250
Long-term debt 500 1,000 950
Capital (ordinary shares of 50p each) 3,000 3,130 3,177
Reserves 1,223 1,810 2,527
Shareholders' equity 4,223 4,940 5,704
Total liabilities and equity 7,136 10,300 11,904

Income Statement for Ketzie Kord Plc (£000)

2013 2014 2015


Sales 11,863 14,952 16,349
Cost of goods sold 8,537 11,124 12,016
Gross profit 3,326 3,828 4,333
Selling, general and admin costs (incl. labour) 2,096 2,221 2,475
EBIT 1,230 1,607 1,858
Interest 73 188 200
EBT 1,157 1,419 1,658
Taxation 390 452 576
Net Profit 767 967 1,082
Dividends 180 250 318
Additional information includes the following:

1) The market value of the shares of the business was £2.75 for 2013, £2.50 for 2014
and £1.50 for 2015.

2) All sales and purchases are made on credit.

3) The cost of goods sold figure can be analysed as follows:

2013 2014 2015


Op. Stock 1,196 1,447 1,802
Purchases 8,793 11,680 12,977
Cl. Stock 1,452 2,003 2,763
Cost of sales 8,537 11,124 12,016

4) The business employed 110 staff in 2013, 120 in 2014 and 140 in 2015.

5) The dividends have been approved by the shareholders for all three years, but not
paid until after then.

Required:

a) Calculate appropriate ratios for the 3-year period to help you with evaluating the
performance of the company.

b) Draw up diagrams for each category of ratios to depict the financial situation of
the company.

c) Prepare a trend analysis for the ratios you calculated in (a) and comment on the
factors that might have affected the ratios.

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