Verify analyst claims while supporting your answers with relevant calculations Comment on overall financial performance of the company.

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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 FY10

 FY11

 FY12

 FY13

 FY14

Financial Statements

 GBP m

 GBP m

 GBP m

 GBP m

 GBP m

Income Statements

 

 

 

 

 

Revenue

         4,390

         3,624

         3,717

         8,167

         11,366

Profit before interest & taxes (EBIT)

            844

            700

            704

            933

           1,579

Net Interest Payable

            (80)

            (54)

            (98)

          (163)

            (188)

Taxation

          (186)

          (195)

          (208)

          (349)

            (579)

Miniorities

            (94)

            (99)

          (105)

          (125)

            (167)

Profit for the year

            484

            352

            293

            296

               645

Balance Sheet

 

 

 

 

 

Fixed Assets

         3,510

         3,667

         4,758

      10,431

         11,483

Current asset investment,cash at bank & in hand

            316

            218

            290

            561

               682

Other current assets

            558

            514

            643

         1,258

           1,634

Total Assets

         4,384

         4,399

         5,691

      12,250

         13,799

Interest Bearing debts (long term)

          (602)

      (1,053)

      (1,535)

      (3,523)

         (3,707)

Other creditiors & provisions

      (1,223)

      (1,054)

      (1,102)

      (2,377)

         (3,108)

Total Liabilities

      (1,825)

      (2,107)

      (2,637)

      (5,900)

         (6,815)

Net Assets

         2,559

         2,292

         3,054

         6,350

           6,984

Share Holders Funds

         2,161

         2,006

         2,309

         5,572

           6,165

Equity miniorities interest

            398

            286

            745

            778

               819

Capital employed

         2,559

         2,292

         3,054

         6,350

           6,984

Cash flow

 

 

 

 

 

Working capital movements

            (53)

                 5

               71

               85

               107

Net casf flow from opreations

            864

            859

            975

         1,568

           2,292

 

After analysis the analyst made following assertions:

  1. The company’s efficiency deteriorated
  2. The company’s liquidity improved
  • The company’s solvency deteriorated
  1. The company’s profitability deteriorated

Required:

  1. Verify analyst claims while supporting your answers with relevant calculations
  2. Comment on overall financial performance of the company.

 

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