For ass 1- Analysis percentage of Balance sheet- Analysis percentage of Cash flow statement- Analysis percentage of Statement of Income- Analysis debtor and creditor value by account receivable and...

Assessment Task 1
Part A
1. Evaluation of assets and liabilities from the balance sheet
     
    (in $ 000)
    Particulars
    2014
    2013
    2012
    Cu
ent Assets
     
     
     
    Cash Assets
    35903
    26441
    20691
    Receivables
    164
    6397
    808
    Inventories
    19013
    14569
    13649
    Other Financial Assets
    8
    852
    -93
    Other Assets
    92
    286
    602
    Total Cu
ent Assets
    55180
    48545
    35657
    Non Cu
ent Assets
     
     
     
    Defe
ed Tax assets
    0
    1194
    1204
    Property, Plant and equipment
    22868
    22047
    14573
    Intangible assets
    2378
    2378
    2378
    Total non- cu
ent assets
    25246
    25619
    18155
· Cash assets have showing an increasing trend from 2012 that means the company is able to manage its cash operations efficiently.
· The value of receivables has highly jumped in 2013 but again it is drastically decreased in 2014 which means there was major difference in debtors.
· Inventories are showing an increasing pattern since 2012
· In 2012, other financial assets were in negative figure. However, in 2013 the figure has become positive and showed a high jump. Again in 2014, the value of non financial assets has reduced.
· The value of other assets was constantly decreasing from 2012.
· Defe
ed tax assets have came to negligible value in 2014 when the same compared from the last two years.
· Property, Plant and equipment have increased slightly in 2014 and 2013.
· The value of intangible assets is same from 2012 to 2014.
     
    (in $ 000)
    Particulars
    2014
    2013
    2012
    Payables
    27407
    23465
    17911
    Cu
ent tax liabilities
    2367
    3804
    1636
    Provisions
    1379
    1209
    979
    Cu
ent Liabilities
    31153
    28478
    20526
     
     
     
     
    Provisions
    1972
    2335
    2433
    Defe
ed tax liability
    409
    255
    0
    Bo
owings
    6762
    6762
    3500
    Non Cu
ent Liabilities
    9143
    9352
    5933
     
     
     
     
    Contributed Equity
    3364
    3364
    3364
    Reserves
    -35
    685
    11
    Retained Profits
    36801
    32285
    23798
    Total Equity
    40130
    36334
    27173
· The amount of Cu
ent tax liabilities has increased in 2013 but slightly decreased in 2014.
· The amount of Payables and Provisions has delivering an increasing trend since 2012 which means the company is purchasing more products.
· Defe
ed tax liability reflecting an increasing trend since 2013. In 2012 there was no defe
ed tax liability.
· In 2013, the bo
owings have increased by two times. However, since 2013 the amount of bo
owings was stable that means the company has not taken any further loan from the outside party.
· There is no difference in the value of contributed Equity.
· There was a high jump in the value of Reserves in 2013 but the same trend cannot be seen in 2014. The negative value has been seen in the 2014 which is the worst year when compared from 2012 and 2013.
· The value of retained profits is following an increasing pattern from 2012.
2. Cash flow analysis
     
    Amount ($ 000)
    Particulars
    2014
    2013
    2012
    Cash flow from operating activities
     
     
     
    Receipts from custome
    166298
    135762
    123726
    Payments to Suppliers
    -139104
    -112338
    -108402
    Interest received
    1124
    992
    977
    Income tax paid
    -5902
    -4713
    -3448
    Cash flow from operating activities
    22416
    19703
    12853
     
     
     
     
    Cash flow from investing activities
     
     
     
    Purchase of Property, Plant and Equipments
    -2933
    -9268
    -2203
     
     
     
     
    Cash flow from financing activities
     
     
     
    Payment of dividends on ordinary shares
    -9720
    -7695
    -7290
    Proceeds from bo
owings
    0
    3262
    0
    Interest Paid
    -301
    -252
    -221
    Cash flow from financing activities
    -10021
    -4685
    -7511
     
     
     
     
    Net increase in cash held
    9462
    5750
    3139
     
     
     
     
    Add: Opening balances
    26441
    20691
    17552
     
     
     
     
    Closing Balance
    35903
    26441
    20691
· Receipts from customer showing an increasing trend from 2012 which means that the company is able to collect its cash from their debtors. Further, increase in sales has also increased from 2012.
· Payments to Suppliers have increasing since 2012 which means the company is purchasing their products on credit basis.
· Interest Received is increasing since 2012.
· Income tax paid has following increasing pattern from 2012 which means the income of the company has increased and so the tax amount is also increasing.
· In 2013, the company has purchased more Property, Plant and Equipments when compared in 2012 and 2014.
· Payment of dividends on ordinary shares is increasing since 2012 that means the rate of dividend has increased from 2012.
· In 2013, the company has taken bo
owings for smooth functioning of the business. In 2012 and 2014 there were no bo
owings.
· The value of Interest paid is showing an increasing pattern since 2012.
3. Cost and Sales Analysis
     
    Amount ($ 000)
    Particulars
    2014
    2013
    2012
    Revenue from sale of goods
    141442
    127431
    109391
    Cost of goods sold
    -56019
    -49925
    -42883
     
    85423
    77506
    66508
· The sales of the company have following an increasing pattern from 2012.
· As sale is increasing hence cost of goods sold would also increase in the same way.
4. Debtor and creditor values analysis
· The value of receivables has highly jumped in 2013 but again it is drastically decreased in 2014 which means there was major difference in debtors.
· The amount of Payables and Provisions has delivering an increasing trend since 2012 which means the company is purchasing more products.
· If the company give more credit period then it is not impossible to manage its suppliers and satisfy themselves as per the given conditions.
5. Analysis of Director Report
The critical factor of the...