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Year
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2018
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Quarter
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September 2018
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Subject
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FINANCIAL MANAGEMENT 1 (FIN 3233)
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Weightage
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25%
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Submission Date
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12/10/2018
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Regulations
A. Late Submission
·
A 10% deduction per day of total coursework
marks (excluding weekends and public holidays).
·
Late submission between 5 to 10 days, results in
a 50% deduction of total coursework marks.
·
Late submission past 10 days results in an
automatic 0% for coursework and the student will be barred from the final
examination.
B. Deliverables
Students must submit all materials supporting their coursework listed in the deliverable section.
·
The coursework must be entirely your own work.
Please make sure that you are aware of the rules concerning plagiarism. If you
are unclear about them, please consult your program coordinator/lecturer.
·
Thecoursework
should exhibit formal research skills i.e. with a table of content, proper
citations, references, and appendixes.
·
The coursework
write up must be able to demonstrate critical analysis and application of both
theory and practical issues to the company that you have selected.
·
Student may
include additional relevant data/information apart from the proposed guidelines
in conjunction to your research. Additional marks will be awarded for such
attempt.
·
Your coursework
should not be more than 1500 words.
·
You
should bind your coursework with the coursework cover as the 1st
page.
·
All written reports MUST be submitted for similarity
checks to Turnitin
·
You should attach a softcopy of the assignment
in a CD together with the assignment.
QUESTIONS
CASE STUDY (25
Marks)
Elegant Sdn Bhd was established in year 2004. The company has invested
substantial efforts in product development, such as, shampoo and conditioner.
Below are the Statement of Financial Position and Statement of Comprehensive
Income for the year ended December 31, 2016 and 2017.
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Elegant Sdn Bhd
Extracted
Statement of Financial Position as at
31 December 2016
and 2017
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|||||
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(in thousands)
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2016
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2017
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Current Assets
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|
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Cash and Cash Equivalent
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287,439
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483,636
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Investments
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-
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807,460
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Accounts Receivables
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3,422
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12,024
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Inventories
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80,643
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134,722
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Total Current
Assets
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371,504
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1,437,842
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Non-Current
Assets
|
|
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|||
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Property, Plant & Equipments
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54,236
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84,267
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Intangible Assets
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23,107
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33,849
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Total
Non-Current Assets
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77,343
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118,116
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Total Assets
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448,847
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1,555,958
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Current
Liabilities
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|
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Accounts Payables
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74,230
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78,333
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Others
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1,800
|
1,728
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Accrued Income Tax
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57,233
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14,323
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|||
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Total Current
Liabilities
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133,263
|
94,384
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|||
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Non-Current Liabilities
|
|
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Financial Lease Liabilities
|
700
|
423
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Long-Term Loans
|
6,721
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3,942
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Others
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2,000
|
3,420
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Total
Non-Current Liabilities
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9,421
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7,785
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|||
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Total
Liabilities
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142,684
|
102,169
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Shareholders’
Equity
|
|
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Issued and Paid-up Capital
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50,000
|
330,000
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Premium on Share Capital
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-
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925,588
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Retained Earnings
|
256,163
|
198,201
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Total
Shareholders’ Equity
|
306,163
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1,453,789
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Total
Liabilities and Shareholders’ Equity
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448,847
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1,555,958
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Elegant Sdn Bhd
Extracted
Statement of Comprehensive Income for the Year Ended
31 December 2016
and 2017
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(in thousands)
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2016
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2017
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Sales Revenue
|
600,000
|
800,000
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Cost of Sales
|
180,178
|
235,429
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|||
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Gross Profit
|
419,822
|
564,571
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Other Incomes and Expenses
|
|
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Interest Income
|
850
|
3,284
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|||
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Other Incomes
|
2,700
|
3,876
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Selling Expenses
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184,233
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276,429
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Administrative Expenses
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70,123
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89,200
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Profit before
Interest and Income Tax
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169,016
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206,102
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Interest Costs
|
800
|
355
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Profit before
Income Tax
|
168,216
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205,747
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|||
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Income Tax
|
28,596
|
34,977
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|||
|
Profit for the
Year
|
139,620
|
170,770
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|||
Assume the company expanded its business for hair care product
development in year 2017. The company issued shares capital, raised new
long-term loan of RM100,000 and retired RM2,000,000 during year 2017. The
depreciation for the year is RM7,000,000. The company also purchased property,
plant and equipment for RM40,000,000 and sold RM5,000,000 in year 2017.
Dividend payment in year 2017 is RM231,642,000.
a) Calculate the following ratios for 2016 and 2017 as well as the change
between these 2 years :
i) Current ratio
ii) Quick ratio
iii) Accounts receivable turnover
iv) Inventory turnover
v) Profit margin
vi) Return on equity (ROE)
vii) Return on assets (ROA)
viii) Debt-equity ratio
(2 marks x 8 = 16 marks)
b) Comment on the performance of the company. For each ratio, comment on
the pros and cons of the change of ratio between the 2 years. (1 mark x 8 = 8 marks)
(Mark allocated for format = 1)
(Total = 25 marks)