Assignment3

The analysis and interpretation of accounting information are vital for decision-making in the manufacturing, trading, service, and financial sectors. As student of Cost Accounting, you are required to conduct a research on Seprod Company Ltd 2018-2019.(a copy of the report will be attach)

A. Provide;

i. A brief background on the company

ii. Financial statements for two consecutive years (This can be shown in the appendix)

B. From the financial statements selected compute TWO (2) ratios from each category of ratios for the two years:

i. liquidity

ii. solvency

iii. profitability

iv. efficiency

v. capital structure

C. Analyse the performance of the company in terms of items (i. – v. above) based on the ratios computed.

D. Compare the two years performance and indicate in which of the years the company performed better in terms of liquidity and solvency, profitability and investment. performance.

E. Based on your analysis, advise THREE (3) different users on whether they would invest in the company you have selected.

Leave a Reply

Your email address will not be published. Required fields are marked *