Reasearch
INSTRUCTION: Answer ALL questions.
The analysis and interpretation of accounting information is vital for decision making in the manufacturing, trading, service and financial sectors. As students of Cost Accounting, you are required to conduct a research on Seprod Company Ltd 2018-2019. you shouls mee the following objectives:
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.