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FIN 601 CLASS ACTIVITY - SESSION 4 Av. Blanc 53, 1202 Geneva, Switzerland T: XXXXXXXXXXE: XXXXXXXXXX Accredited by IACBE, ECBE, EDUQUA XXXXXXXXXXMember of FEDE, FSEP, AGEP, CEEMAN www.mygbs.org...

FIN 601
CLASS ACTIVITY - SESSION 4

Av. Blanc 53, 1202 Geneva, Switzerland T: XXXXXXXXXXE: XXXXXXXXXX
Accredited by IACBE, ECBE, EDUQUA XXXXXXXXXXMember of FEDE, FSEP, AGEP, CEEMAN

www.mygbs.org XXXXXXXXXXBachelors | Masters | Doctorates Geneva | Barcelona | Moscow | Astana | Abu Dhabi | Dubai | Dammam
CONSOLIDATED BALANCE SHEET (USD $)
In Thousands
Dec. 31, 2015 Dec. 31, 2014
Cu
ent assets:
Cash and cash equivalents $772,306 $716,740
Short-term investments 22,948 62,376
Accounts receivable trade (less allowance for doubtful accounts (2009 -
$4,614 and 2008 - $4, XXXXXXXXXX,979 104,149
Accounts receivable other (including affiliates 2009 - $4,491 and 2008 -
$1,925) 31,971 29,439
Inventories 456,122 451,597
Defe
ed income tax - cu
ent portion 19,672 64,711
Other cu
ent assets 67,131 124,681
Total cu
ent assets 1,778,129 1,553,693
Property, net 3,969,558 3,810,508
Leachable material, net 107,262 156,294
Intangible assets, net 113,840 115,059
Defe
ed income tax 52,670 83,106
Other assets 41,113 45,664
Total assets 6,062,572 5,764,324
Cu
ent liabilities:
Cu
ent portion of long-term debt 10,000 10,000
Cu
ent overdraft accounts with Banks 26,876 24,335
Accounts payable 283,703 413,351
Accrued income taxes 91,359 34,378
Due to affiliated companies 8,965
Accrued workers' participation 150,692 205,466
Accrued interest 39,795 40,968
Total cu
ent liabilities 602,425 737,463
Long-term debt 1,270,252 1,279,972
Defe
ed income taxes 143,508 169,342
Non-cu
ent taxes payable 26,201 70,266
Other liabilities and reserves 77,607 93,875
Asset retirement obligation 48,925 18,007
Total non-cu
ent liabilities 1,566,493 1,631,462
STOCKHOLDERS' EQUITY
Common stock par value $0.01; shares authorized: 2009 and 2008
960,000,000 shares issued: 2009 and XXXXXXXXXX,596,086 8,846 8,846
Additional paid-in capital 1,013,326 993,826
Retained earnings 3,469,930 2,916,517
Accumulated other comprehensive loss (13, XXXXXXXXXX,477)
Treasury stock, at cost, common shares (603, XXXXXXXXXX,453)
Total stockholders' equity 3,875,628 3,381,259
Non-controlling interest 18,026 14,140
Total equity 3,893,654 3,395,399
Total liabilities and equity $6,062,572 $5,764,324

FIN 601
CLASS ACTIVITY - SESSION 4

Av. Blanc 53, 1202 Geneva, Switzerland T: XXXXXXXXXXE: XXXXXXXXXX
Accredited by IACBE, ECBE, EDUQUA XXXXXXXXXXMember of FEDE, FSEP, AGEP, CEEMAN

www.mygbs.org XXXXXXXXXXBachelors | Masters | Doctorates Geneva | Barcelona | Moscow | Astana | Abu Dhabi | Dubai | Dammam
CONSOLIDATED INCOME STATEMENT (USD $)
In Thousands, except Per Share data
12 Months Ended
Dec. 31, 2015
12 Months Ended
Dec. 31, 2014
CONSOLIDATED STATEMENT OF EARNINGS
Net sales $3,734,280 $4,850,820
Operating costs and expenses:
Cost of sales (exclusive of depreciation, amortization and depletion
shown separately below) 1,823,673 2,182,206
Selling, general and administrative 78,291 102,432
Depreciation, amortization and depletion 322,590 327,302
Exploration 24,578 36,990
Total operating costs and expenses 2,249,132 2,648,930
Operating income 1,485,148 2,201,890
Interest expense (99, XXXXXXXXXX,928)
Capitalized interest 2,156 6,776
Gain (loss) on derivative instruments 4,236 (74,628)
Loss on debt prepayments
Other income (expense) 6,077 17,272
Interest income 6,610 48,400
Income before income taxes 1,404,434 2,093,782
Income taxes 469,861 679,323
Net income 934,573 1,414,459
Less: Net income attributable to the non-controlling interest 5,192 7,866
Net income attributable $929,381 $1,406,593

Please read very carefully the above Balance Sheet and Income statement and proceed with the following:
1- Calculate the Working Capital of the company in 2014 and 2015. How can you interpret the result?
2- Calculate the Solvency Ratios. Based on the obtained results please give your interpretation regarding the
solvency of this company.
3- Calculate the Profitability Ratios. Based on the obtained results please give your interpretation regarding
the profitability of this company.
4- Calculate the following:
a. Leverage
. Gearing
c. Number of days Credit
d. Number of days Debit
e. Overheads as percentage of turnover
Based on the obtained results please give your interpretation regarding the performance of this
company.
What would be your recommendation to improve the financial results?
Good Luck

Page 1
Av. Blanc 53, 1202 Geneva, Switzerland T: XXXXXXXXXXE: XXXXXXXXXX
Accredited by IACBE, ECBE, EDUQUA XXXXXXXXXXMember of FEDE, FSEP, AGEP, CEEMAN

www.mygbs.org XXXXXXXXXXBachelors | Masters | Doctorates Geneva | Barcelona | Moscow | Astana | Abu Dhabi | Dubai | Dammam
CLASS ACTIVITY
BOOKLET
FIN 601 Principles of Finance
Student ID:
Name:
Location:
Page 2
Av. Blanc 53, 1202 Geneva, Switzerland T: XXXXXXXXXXE: XXXXXXXXXX
Accredited by IACBE, ECBE, EDUQUA XXXXXXXXXXMember of FEDE, FSEP, AGEP, CEEMAN

www.mygbs.org XXXXXXXXXXBachelors | Masters | Doctorates Geneva | Barcelona | Moscow | Astana | Abu Dhabi | Dubai | Dammam
Course Assessment
Structure
Assessment Description
% of Total
Course Mark
1 Class Activities 55%
2 Final Exam 45%
Page 3
Av. Blanc 53, 1202 Geneva, Switzerland T: XXXXXXXXXXE: XXXXXXXXXX
Accredited by IACBE, ECBE, EDUQUA XXXXXXXXXXMember of FEDE, FSEP, AGEP, CEEMAN

www.mygbs.org XXXXXXXXXXBachelors | Masters | Doctorates Geneva | Barcelona | Moscow | Astana | Abu Dhabi | Dubai | Dammam
Balance Sheet

(Dollars in thousands)

2005

2004

2003

2002
Assets
Cu
ent Assets:
Cash and Cash Equivalents $272,640 $82,540 $321,390 $281,750
Receivables XXXXXXXXXX, XXXXXXXXXX, XXXXXXXXXX, XXXXXXXXXX,740
Inventory XXXXXXXXXX, XXXXXXXXXX, XXXXXXXXXX, XXXXXXXXXX,440
Prepaid Expenses XXXXXXXXXX, XXXXXXXXXX, XXXXXXXXXX, XXXXXXXXXX,630
Total Cu
ent Assets 1,078, XXXXXXXXXX,140 1,036, XXXXXXXXXX,560

Property, Plant & Equipment (at cost):
Land and Buildings XXXXXXXXXX, XXXXXXXXXX, XXXXXXXXXX, XXXXXXXXXX,140
Fixtures and equipment XXXXXXXXXX, XXXXXXXXXX, XXXXXXXXXX, XXXXXXXXXX,740
Leasehold improvements XXXXXXXXXX, XXXXXXXXXX, XXXXXXXXXX, XXXXXXXXXX,080
Construction in progress XXXXXXXXXX46, XXXXXXXXXX, XXXXXXXXXX,740
Less Accumulated Depreciation XXXXXXXXXX, XXXXXXXXXX, XXXXXXXXXX, XXXXXXXXXX,470)
Property, Plant & Equipment, net XXXXXXXXXX, XXXXXXXXXX, XXXXXXXXXX, XXXXXXXXXX,230
Total Assets $1,854,000 $1,669,320 $1,511,520 $1,069,790

Liabilities and Stockholders’ Equity
Cu
ent Liabilities:
Accounts Payable $377,970 $244,150 $259,040 $212,223
Advance Payment on Orders XXXXXXXXXX, XXXXXXXXXX, XXXXXXXXXX, XXXXXXXXXX,530
Income Taxes Payable XXXXXXXXXX, XXXXXXXXXX, XXXXXXXXXX, XXXXXXXXXX,940
Other Cu
ent Obligations XXXXXXXXXX, XXXXXXXXXX, XXXXXXXXXX, XXXXXXXXXX,900
Total Cu
ent Liabilities XXXXXXXXXX, XXXXXXXXXX,150
Sep 24, 2019
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