Please follow the following steps to conduct the financial analysis of Pharmamax: 1. Enter the attached financial statements into a New Excel and make sure that the numbers have been entered correctly so that you may upload it after you have completed the entire assignment. 2. Write an introduction that gives a brief outline of the Palestinian pharmaceutical sector. Include critical information regarding the industry's market size, competitive landscape, export- import dynamics, and regulatory frameworks, 3. Construct a cash flow statement for Pharmamax using the attached financial statements. This needs to he done using both the direct and indirect methods. 4. Analyse the Pharmamax attached financial statements, including the cash flow statement, using the following tools: a) Financial ratios(all the ratios covered in class) of pharmamax and those of the Palestinian pharmaceutical company of your choice. b) Vertical common-size analysis: to understand the relative proportions of account balances for each of the available years (2021-2022). Compare to those of the Palestinian pharmaceutical company of your choice. c) Horizontal analysis: to determine trends and patterns of growth over time for the Pharmamax company and compare to the competitor d) Dupont Analysis. e) Z-score. 15. Interpret the company's financial performance based on ratio analysis and clarify the company's liquidity performance, operational activity, profitability, and debt in comparison with the competitive company of your choice. 6. Given the financial statements, calculate the basic earnings per share and the dilutive eamings per share for the year ended 2022. Accordingly, find the weighted average number of shares outstanding, and thereafter, find the basic and dilutive EPS, given that the company also has a dilutive security represented in 15, 000 preferred stocks that pay 40% of the dividends reported in the income statement and are convertible into two common stocks each. In addition to $60,000 of 4.5% convertible bonds, there is a total of 12, 000 common shares. Consider the following information: Pharmamax Consolidated statement of comprehensive income and retained earnings for the year ended 31 December 2022 Notes 2022 CU 2021 CU Revenue 6,863.545 5.808.653 Cost of sales (5.178.530) (4,422, 575) Gross profit. 1.685.015 1, 386.078 Other income 88.850 25.000 Distribution costs (175, 550) (156.800) Administrative expenses (810, 230) (660, 389) Other expenses (106,763) (100,030) Finance costs 7 (26, 366) (36,712) Profit before tax 654, 956 457, 147 Income tax expense 9 (270,250) (189, 559) Profit for the year 384,706 267,588 Retained earings at start of year 2.171.353 2,003, 765 Dividends (150,000) (100,000) Retained carings at end of year 2.406.059 2.171,353 Pharmamax: Consolidated statement of financial position at 31 December 2022 Notes 2022 2021 2020 ASSETS CU CU CU Current assets Cash 28,700 22,075 18, 478 Trade and other receivables 585, 548 573, 862 521, 234 Inventories 57.381 47,920 45,050 671,629 643, 857 584.762 Non- current assets investment in associate 107,500 107,500 107, 500 Property, plant and equipment 2,549, 945 2, 401, 455 2, 186, 002 Intangible assets 14 850 2,550 4,250 Deferred tax asset s 4,309 2, 9122, 155 2, 662, 604 2, 514, 417 2, 299, 907 Total assets 3, 334, 233 3, 158,274 2,884, 669 LIABILITIES AND EQUITY Current liabilities Bank overdraft 83,600 115, 507 20, 435 Trade payables 431,480 420,520412,690 Interest payable 2,000 1,200 Current tax liability 271, 647 190, 316 173, 211 Provision for warranty obligations 18 4,200 5,040 2,000 Current portion of employee benefit obligations 이 4,944 4,754 4, 571 Current portion of obligations under finance leases 20 21,461 19,884 18, 423 819,332 757, 221 631, 330 Non-current liabilities Bank loan 16 50,000 150,000 150,000 Long-term employee benefit obligations 19 5, 679 5,076 5, 066 Obligations under finance leases 20 23, 163 44, 624 64, 508 78, 842 199, 700 219,574 Total liabilities 898.174 956, 921 850, 904 Equity Share capital 22 30,000 30,000 30,000 Retained earnings 4 2.406, 059 2, 171, 353 2, 003, 765 2.436, 059 2, 201,353 Total liabilities and equity 3,334, 233 3, 158, 274 2, 884, 669
Please follow the following steps to conduct the
financial analysis of Pharmamax: 1. Enter the attached financial statements into a New Excel and make sure that the numbers have been entered correctly so that you may upload it after you have completed the entire assignment. 2. Write an introduction that gives a brief outline of the Palestinian pharmaceutical sector. Include critical information regarding the industry's market size, competitive landscape, export- import dynamics, and regulatory frameworks, 3. Construct a cash flow statement for Pharmamax using the attached financial statements. This needs to he done using both the direct and indirect methods. 4. Analyse the Pharmamax attached financial statements, including the cash flow statement, using the following tools: a) Financial ratios(all the ratios covered in class) of pharmamax and those of the Palestinian pharmaceutical company of your choice. b) Vertical common-size analysis: to understand the relative proportions of account balances for each of the available years (2021-2022). Compare to those of the Palestinian pharmaceutical company of your choice. c) Horizontal analysis: to determine trends and patterns of growth over time for the Pharmamax company and compare to the competitor d) Dupont Analysis. e) Z-score. 15. Interpret the company's financial performance based on
ratio analysis and clarify the company's liquidity performance, operational activity, profitability, and debt in comparison with the competitive company of your choice. 6. Given the financial statements, calculate the basic earnings per share and the dilutive eamings per share for the year ended 2022. Accordingly, find the weighted average number of shares outstanding, and thereafter, find the basic and dilutive EPS, given that the company also has a dilutive security represented in 15, 000
2022 Notes 2022 CU 2021 CU Revenue
6,863.545 5.808.653 Cost of sales (5.178.530) (4,422, 575) Gross profit. 1.685.015 1, 386.078 Other income 88.850 25.000 Distribution costs (175, 550) (156.800) Administrative expenses (810, 230) (660, 389) Other expenses (106,763) (100,030) Finance costs 7 (26, 366) (36,712)
Profit before tax 654, 956 457, 147 Income tax expense 9 (270,250) (189, 559) Profit for the year
384,706 267,588 Retained earings at start of year 2.171.353 2,003, 765 Dividends (150,000) (100,000)
Retained carings at end of year 2.406.059 2.171,353
Pharmamax: Consolidated
ASSETS CU CU CU Current assets Cash 28,700 22,075 18, 478 Trade and other receivables 585, 548 573, 862 521, 234 Inventories 57.381 47,920 45,050 671,629 643, 857 584.762 Non-
current assets investment in associate 107,500 107,500 107, 500 Property, plant and equipment 2,549, 945 2, 401, 455 2, 186, 002 Intangible assets 14 850 2,550 4,250
LIABILITIES AND EQUITY Current liabilities Bank overdraft 83,600 115, 507 20, 435 Trade payables
431,480 420,520412,690 Interest payable 2,000 1,200 Current tax liability 271, 647 190, 316 173, 211 Provision
for warranty obligations 18 4,200 5,040 2,000 Current portion of employee benefit obligations
이 4,944 4,754 4, 571 Current portion of obligations under finance leases
20 21,461 19,884 18, 423 819,332 757, 221 631, 330 Non-current liabilities Bank loan
16 50,000 150,000 150,000 Long-term employee benefit obligations 19 5, 679 5,076 5, 066 Obligations
under finance leases 20 23, 163 44, 624 64, 508 78, 842 199, 700 219,574
Total liabilities 898.174 956, 921 850, 904 Equity Share capital 22 30,000 30,000 30,000 Retained earnings
4 2.406, 059 2, 171, 353 2, 003, 765 2.436, 059 2, 201,353 Total liabilities and equity
3,334, 233 3, 158, 274 2, 884, 669
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