Read the financial statements from the annual report and complete the following tasks: 1. Provide a brief of the company (Name, year of establishment, history, background, the product/service they deal in) and also what year is under review? Try selecting the latest year. 2. Looking at the contents page and flicking through the report, which sections dominate the report? 3. Who are the directors? List three or four main directors along with a brief summary of director’s report. 4. Who are the auditors? What is the auditor’s opinion? Provide a brief summary of auditor’s report 5. Have sales increased or decreased (compare the year you have selected with that of the previous/preceding one)? Comment on the reasons for the change in the sales. 6. What is the net cash inflow (outflow) from operating activities? (See the company’s cash flow statement). How has the company’s net cash inflow changed from the previous year in terms of money and in terms of percentage? 7. What was the retained profit for the year? Has the company any borrowings, i.e. loans, debentures, etc.? 8. Based on the income statement, Balance sheet & cash flow statement, calculate the following ratios and comment on the financial health of the company: 1) Profitability ratios 2) Liquidity ratios 3) Asset turnover ratio 4) Leverage ratios
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