Elements of Business Finance: Tutorial Assessment # 1: 20 marks: Due-date 17/03/23:
Time 12:30pm, Venue - SBPP Foyer
Analyze KUND MONO Educational Ltd performance using ratio analysis.
Ratio analysis express the relationship among selected items of financial statement data. A ratio
express the mathematical relationship between one quantity and another. The relationship is
expressed in terms of either a percentage, rate or simple proportion.
To analyse the primary financial statements, we can use ratios to evaluate liquidity,
profitability and solvency.
A. Calculate, compare and interpret appropriate ratios for the years’. 5marks
i.
Liquidity ratios
1. Current ratio
2. Quick ratio
3. Inventory turnover
4. Days sales in inventory
ii.
Profitability Ratios
1. Profit margin
2. Assets turnover
3. Return on common stockholders’ equity
iii.
Solvency ratios
1. Debt to asset ratio
2. Equity ratio
B. Prepare a brief report about the liquidity, solvency and profitability. 5marks
C. Will you recommend this company for investment purpose? Substantiate your
answers. 2.5 marks
D. What financing strategy do you suggest as a banker? Justify your answers. 2.5
marks
Note: No one will be given a luxury opportunity to submit his or her paper later than the
due date. Please, be prompt with time.
Wish you all the best>Kandaketz……………………………….!!!!!!!!
Tutor(Mcdonald)