You have been appointed as a Senior Financial Analyst for a multi-national manufacturing concern. Your appointment was being discussed for so long among board members as majority of them believed that...


You have been appointed as a Senior Financial Analyst for a multi-national manufacturing concern. Your appointment was being discussed for so long among board members as majority of them believed that this position is not really required as they already have a team of 4 qualified financial analysts.


Only CFO was convinced to have you onboard and primarily he is impressed by your previous experiences of writing financial performance reports. He also wants you to lead current team of financial analysts.


In your first meeting with CFO, you have been provided with most recent Financial Statements you have been given an assignment to prepare a
report on profitability, liquidity, and capital structure
of the company. CFO also needs your advice if company should go for debt financing for $2.5M. Below is the extract From Financial Statements that is made by one of your team mates.


























































































































































































































Income Statement











2018





2019





Sales



9974





9471





cost of goods sold



5035





3845









Gross Profit



4939





5626









Operating Expanses









Salaries expanse



1654



594





Rent Expanse



547



1738





Utility Expanses



858



545





Depreciation Expanse



1159



1359









Operating Profit



721





1390









Interest Expanse



300



900









PBIT



421



490











TAX @20%



84.2



98









PAT



336.8





392






































































































































Statement of Financial Position





2018



2019



Cash and Cash Equivalents



432



635



Receivables



344



348



Inventory



305



598



Prepaid Assets



111



731









Non-Current Assets (Fair value)



750



950









Total Assets



1942



3262









Current Liabilities



1050



1560



Non-Current Liabilities



500



550









Equity



392



1152















 Total Equity and Liabilities



1942



3262



All figures are rounded to $000.

Jun 05, 2022
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