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Evaluating a firm’s financial performance requires multidimensional analysis and cannot be confined to the Accounting information only. Explain with respect to your analysis of the attached financial statements.

Evaluating a firm’s financial performance requires multidimensional analysis and cannot be confined to the Accounting information only. Explain with respect to your analysis of the attached financial statements.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Evaluating a firm’s financial performance requires multidimensional analysis and cannot be confined to the Accounting information only. Explain with respect to your analysis of the attached financial statements.

STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2020 STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2020 2020 2019 2020 2019 (Rupees '000) (Rupees 000) (Rupees '000) (Rupees '000) ASSETS Non-current assets EQUITY Share capital and reserves Share capital Capital reserves Property, plant and equipment Intangible assets and goodwill Investment property Long term investments Long term deposits 55,789,469 7,710,293 57,242,086 7,794,154 5,962,528 5,962,528 8,217,695 7,504,621 266,075 262,349 Revenue reserves 40,472,977 44,138,769 13,687,830 118,418 12,512,039 54,653,200 57,605,918 118,038 77,572,085 77,928,666 LIABILITIES Non-current liabilities Long term financing Deferred tax liability - net 11,542,250 9,907,879 10,617,491 Employee benefit obligations 27,915 24,890 21,478,044 10,642,381 Current assets Current liabilities 7,010,155 2,291,473 1,727,790 175,924 24,457 Stores, spare parts and loose tools Stock in trade Trade and other payables Short-term borrowings Current portion of long term financing Current portion of long term musharaka Unclaimed dividend 5,511,210 2,689,443 2,101,856 407,771 26,862 641,090 3,212,501 462,912 15,053,645 7,654,365 8,059,754 10,835,368 3,375,360 10,710,748 Trade debts 272,171 Advances Deposits and prepayments Other receivables Advance tax - net 2,249,733 37,967 213,797 24,734,012 841,700 4,815,220 347,691 17,234,410 18,675,251 Cash and bank balances Total liabilities 40,153,295 35,376,393 Total equity and liabilities 94,806,495 92,982,311 Total assets 94,806,495 92,982,311
Transcribed Image Text:STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2020 STATEMENT OF FINANCIAL POSITION AS AT 30 JUNE 2020 2020 2019 2020 2019 (Rupees '000) (Rupees 000) (Rupees '000) (Rupees '000) ASSETS Non-current assets EQUITY Share capital and reserves Share capital Capital reserves Property, plant and equipment Intangible assets and goodwill Investment property Long term investments Long term deposits 55,789,469 7,710,293 57,242,086 7,794,154 5,962,528 5,962,528 8,217,695 7,504,621 266,075 262,349 Revenue reserves 40,472,977 44,138,769 13,687,830 118,418 12,512,039 54,653,200 57,605,918 118,038 77,572,085 77,928,666 LIABILITIES Non-current liabilities Long term financing Deferred tax liability - net 11,542,250 9,907,879 10,617,491 Employee benefit obligations 27,915 24,890 21,478,044 10,642,381 Current assets Current liabilities 7,010,155 2,291,473 1,727,790 175,924 24,457 Stores, spare parts and loose tools Stock in trade Trade and other payables Short-term borrowings Current portion of long term financing Current portion of long term musharaka Unclaimed dividend 5,511,210 2,689,443 2,101,856 407,771 26,862 641,090 3,212,501 462,912 15,053,645 7,654,365 8,059,754 10,835,368 3,375,360 10,710,748 Trade debts 272,171 Advances Deposits and prepayments Other receivables Advance tax - net 2,249,733 37,967 213,797 24,734,012 841,700 4,815,220 347,691 17,234,410 18,675,251 Cash and bank balances Total liabilities 40,153,295 35,376,393 Total equity and liabilities 94,806,495 92,982,311 Total assets 94,806,495 92,982,311
STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2020 STATEMENT OF PROFIT OR LOSS FOR THE YEAR ENDED 30 JUNE 2020 2010 Repe w Apentoo CASH FLOWS FROM OPERATING ACTIVInes Gere 2020 2019 Canendial etartd et (Rupees '000) (Rupees DO0) Pnforttetr everalt pon for sewingack ton deptcount onfordndete Shareofpofeyaccounted inwesteetofta Changeinfreofiment prepety Gross turnover 63,687,754 79,000,314 Less: rebates and discounts (2,243,317) (2,354,731) Less: sales tax and excise duty (24,315,711) (23,044,071) terest epeean land compmten iance c Net turnover 37,128,726 53,601,512 Paan toremkyee retement berefe Cost of sales (36,011,992) (37,556.552) 14 Chargi Gross profit 1,116,734 16,044,960 Sores sparepatsand ke Sackin tade Trade det Aan Other income 247,618 122,211 Dptandpyments aer Selling and distribution expenses (794,213) (1,339,086) Tade and other payables Administrative expenses (579,308) (711,411) Cahgeeratedmpingties Other expenses (16,743) (826,752) Long term depe Operating (loss) / profit (25,912) 13,289,922 Finance ctp Empleye mentbenet pt mome ta pai LAS Net cash based ingeneated om operating acvties Finance cost (2,151,701) (1,498,473) CASH FLOWS FROM INVESTING ACTVITES Share of profit of equity-accounted investees - net of tax 1,671,133 1,454,101 Acquton of ptypantnd ment A en ofghte et Predh from e of propertylant andgument Rentreceived tomivestent property CLAZ (Loss) /profit before tax (506,480) 13,245,550 Income tax credit / (charge) 555,732 3,148.265) 10,097 285 Net cash ud in iting as Profit for the year 49,252 CASH FLOWSROM INANCINGACTIvTeS Neprents oflung teman Repyments oflong tem muhaka 114 Netash generatdamd nandngtivities Earnings per share - basic and diluted (Rupees) 0.08 16.93 Net ine incahand cashalvalenta Cehand ch er eng efhe Cah and cash valent atendaf the yaa
Transcribed Image Text:STATEMENT OF CASH FLOWS FOR THE YEAR ENDED 30 JUNE 2020 STATEMENT OF PROFIT OR LOSS FOR THE YEAR ENDED 30 JUNE 2020 2010 Repe w Apentoo CASH FLOWS FROM OPERATING ACTIVInes Gere 2020 2019 Canendial etartd et (Rupees '000) (Rupees DO0) Pnforttetr everalt pon for sewingack ton deptcount onfordndete Shareofpofeyaccounted inwesteetofta Changeinfreofiment prepety Gross turnover 63,687,754 79,000,314 Less: rebates and discounts (2,243,317) (2,354,731) Less: sales tax and excise duty (24,315,711) (23,044,071) terest epeean land compmten iance c Net turnover 37,128,726 53,601,512 Paan toremkyee retement berefe Cost of sales (36,011,992) (37,556.552) 14 Chargi Gross profit 1,116,734 16,044,960 Sores sparepatsand ke Sackin tade Trade det Aan Other income 247,618 122,211 Dptandpyments aer Selling and distribution expenses (794,213) (1,339,086) Tade and other payables Administrative expenses (579,308) (711,411) Cahgeeratedmpingties Other expenses (16,743) (826,752) Long term depe Operating (loss) / profit (25,912) 13,289,922 Finance ctp Empleye mentbenet pt mome ta pai LAS Net cash based ingeneated om operating acvties Finance cost (2,151,701) (1,498,473) CASH FLOWS FROM INVESTING ACTVITES Share of profit of equity-accounted investees - net of tax 1,671,133 1,454,101 Acquton of ptypantnd ment A en ofghte et Predh from e of propertylant andgument Rentreceived tomivestent property CLAZ (Loss) /profit before tax (506,480) 13,245,550 Income tax credit / (charge) 555,732 3,148.265) 10,097 285 Net cash ud in iting as Profit for the year 49,252 CASH FLOWSROM INANCINGACTIvTeS Neprents oflung teman Repyments oflong tem muhaka 114 Netash generatdamd nandngtivities Earnings per share - basic and diluted (Rupees) 0.08 16.93 Net ine incahand cashalvalenta Cehand ch er eng efhe Cah and cash valent atendaf the yaa
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