62502 – Required words: 2000 words with 20% increasing or decreasing

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words: 2000 words with 20% or allowanceQuestion 1 :The information is taken from records of ABC Company:Items 2017 2018Bank Short-Term Borrowings 479 13,315Accounts & Notes Payable 289,313 271,468Accrued Expenses 1,803 4,732Dividend payable 0 1Provisions 518 518Other Current Liabilities 17,516 10,911Other Long Term debt 58 55Paid-in Capital 25,000 25,000Legal Reserves 860 1,303Retained Earnings (loss) (1,852) 1,515Profit for the year 10,862 17,143Time Deposits 651 3,225Cash 34,689 64,746Accounts & Notes Receivable (net) 42,317 81,295Advances To Suppliers 4,775 8,762Due From Parent Company 246,730 158,928Prepaid Expenses 173 340Other Debit Balances 11,635 19,133Inventory 2,951 8,796Gross Fixed Assets 3,405 3,772Accumulated Depreciation 2,770 3,035Items 2017 2018Selling & Marketing Expenses 2,075 1,839General & Admin. Expenses 7,008 12,773Provisions 1,655 58Depreciation 230 265FX Gain (Loss) (3,864) 1,132Interest Income 1,798 7,333Other Bank Charges 918 (,306Income Taxes 5,863 5,617Sales Revenue 457,110 695,557COGS 426,434 665,021Net Profit 10,862 17,1431- Prepare financial statements ( income statement and Balance sheet) 2- According to above information, the following questions:1. The company’s gross profit margin?2. The company’s net profit margin?3. The company’s return on assets?4. The company’s return on equity?5. The company’s assets turnover?6. The company’s Inventory turnover?7. The company’s days inventory on hand?8. The company’s receivable turnover?9. The company’s net working capital?10. The company’s current ratio?11. The company’s Quick ratio?12. The company’s average collection period?13. The company’s debt to equity?14. The company’s liability to assets?15. The company’s Equity to assets?3- Makes recommendations to ABC company based on your analysis and interpretation of the financial position.Q2: Calculate the Weighted Average Cost of Capital (WACC) for the following capital structure: (20 marks)Issuing 200,000,000 common stocks with par value of EGP 10 per share, and we have historical data for stock price and market price as below:DATE EGX30 Stock A31/12/2019 13927 10.0630/1/2020 13763 12.3427/2/2020 13009 12.2731/3/2020 9517 10.5030/4/2020 10514 10.7931/5/2020 10110 11.0230/6/2020 10750 13.3329/7/2020 10569 12.9231/8/2020 11366 13.4830/9/2020 10976 11.7028/10/2020 10496 11.84RFR before tax 15.5%, RM=17%, Income tax rate 22.5%, TAX rate for RFR 20%Q3: Suppose that you have the two projects as below:Year Project A Project BInitial investment 1,000,000 1,100,0001 225,000 250,0002 350,000 275,0003 300,000 350,0004 300,000 400,0005 250,000 250,000Cost of Capital 10%Determine which project be accepted using the following technique:- Net present Value (NPV)- Internal Rate of Return(IRR)- Payback period- Discounted Payback period- Profitability Index(PI)

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