Financial Analysis Exercise
Financial Analysis Exercise
Financial Analysis Exercise
sale of goods A.
MOLOCAM was set up on July 11, 2013 with a capital of 5,000 shares of 16,500FCFA each. On
December 31, 2015, MOLOCAM decided to study its financial situation and the following information
was provided to you:
Work required:
ASSETS LIABILITIES
HEADINGS GROSS DEP.PR NET LIABILITIES AMOUN
OV T
Capital 82,500,00
0
Land 46,000,00 9,000,00 37,000,00 Legal reserves 16,000,00
0 0 0 0
Buildings 83,000,00 18,000,0 65,000,00 Statutory reserves 15,000,00
0 00 0 0
Equipment 87,000,00 28,000,0 59,000,00 Optional reserves 19,750,00
0 00 0 0
Non commercial Loan 12,000,00 / 12,000,00 Brought forward 5,000,000
0 0
Accrued interest on comm.. 1,500,000 / 1,500,000 Net profit for the period 25,000,00
Loan 0
Long term securities 16,000,00 / 16,000,00 Long & med. Term 33,200,00
0 0 borrowing 0
Deposit and guarantee 5,000,000 / 5,000,000 Provisions for risk and 24,000,00
expenses 0
Goods 36,500,00 4,000,00 32,500,00 Suppliers of equipment 28,900,00
0 0 0 0
Other supplies 18,700,00 / 18,700,00 Suppliers 36,250,00
0 0 0
Customers 50,000,00 6,500,00 43,500,00 Personnel 9,500,000
0 0 0
Sundry debtors 12,500,00 / 12,500,00 Operating provisioned risk 12,500,00
0 0 & dep 0
2) You are given the balance sheet of CIMARA enterprise as at 31/12/N below.
ASSETS AMOUNT LIABILITIES AMOUNT
Social capital 25,000,000
Land 28,000,000 Reserves 4,000,000
Buildings 13,000,000 Brought forward (1,280,000)
Equipments 4,800,000 Result 3,440,000
Stocks 8,000,000 Borrowings 4,800,000
Customers 4,200,000 Provision for risk 3,000,000
Customers bills receivable 1,800,000 Suppliers 8,500,000
Bank 3,500,000 Personnel 9,000,000
Head office cash 6,000,000 State ------------
Overdraft ------------
The information below is available is available for the financial analysis of the enterprise:
The actual value of land is 32,000,000CFAF
20% of the stocks represents value of the security stock
The value for equipment has been obtained from the application of digressive depreciation
method instead of constant method. All the equipments were acquired on 01/07/N-1 and the life
span is 5 years. The actual value for equipment represents 110% of its normal net accounting
value.
The ceiling for discounting of the customers bills at bank is fixed at 1,000,000CFAF