Acca F7

Financial Reporting Course assignment Louis Boo Rui Xiu due(p) date: 5 declination 2011 Question 1 a) To : conductor of Trinity From : accountant of Trinity catch : 5 Dec 2011 Title : financial performance and come in of Postica favourableness and return Return on capital employed (ROCE) of 73% is in the average return par with early(a) akin company. The megascopic profit borderline and the operating(a) profit margin of 42% and 29% also are in the superior general or average rate. However the difference of 13% is the blueest oppose with mistakable company. This was mystify that Postica doesnt control his company operating expenses well. The plus perturbation of 2.52(73%/29%) is high compare with other. This show that Postica is using his addition well in generate sales. Although Postica is using well the asset in generate sales, the company extradite a sad caution in operating expenses. This was do the return of Postica in the general range. Long term solvency and stability stakes clear up of 1.8 times is the lowest symmetry compare with other same company and it is high risk area. The normal pertain protract should be at least 3 or more. The gear ratio of 52% is also considered has high risk.

appurtenance ratio more than 50% agency the company has one-half or more of capital is from outsider. Postica must make genuine that the greet of capital from outsider is able to turn out to rove company will not bankrupt. Working capital disturbance of stemma of 4.4 times is high ratio compare with resembling company. This means the sales of the company are fast and harbour mellifluous in inv entory. The company may be footrace JIT sys! tem. The receivables solar daylight of 51 days is low compare with other. Shorter receivable day means the company collect concealment the money from the receivable is fast. The company has a great management in liquidity. shareholder investment ratio 5.2 times of dividend overfly is the highest compare with other similar company. The company have high chance will pay dividend to...If you want to get a full essay, order it on our website: OrderEssay.net

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