Financial Performance Evaluation of DP World and PSA Internationals

Running head: FINANCE
Finance
Name of the Student:
Name of the University:
Author’s Note:

1
FINANCE
Table of Contents
Answer to Question 1......................................................................................................................2
Part 1............................................................................................................................................2
Part 2............................................................................................................................................3
Answer to Question 2......................................................................................................................4
Introduction..................................................................................................................................4
Calculation of Key Financial Ratios............................................................................................5
Analysis of Key Financial Ratios for both Companies...............................................................6
Cross Sectional Analysis of Financial Ratios............................................................................10
Conclusion and Recommendations............................................................................................11
Reference.......................................................................................................................................12

2
FINANCE
Answer to Question 1
Part 1
Particulars Amount
Revenue $300,000
Operating Expenses:
Asset Maintenance $32,400
Depreciation Expense $13,420
Port Operation Expense $30,000
Insurance Expense $10,900
Electricity & Telephone Expense $5,600
Wages Expense $38,000
Marine Expense $9,000
Total Operating Expenses $139,320
Net Opertaing Profit $160,680
Less: Interest Expense $14,400
Net Profit before Tax $146,280
Less: Income Tax Expense $43,884
Net Profit for the period $102,396
In the books of Chen Marine & Port Group
Income Statement
for the year ended 30 June 2018
Figure 1: (Images showing Income Statement of Chen Marine and Port Group)
Source: (Created by the Author)

3
FINANCE
Part 2
Particulars Amount Amount
Current Assets:
Cash $38,000
Accounts Receivable $32,000
Inventory $3,000
Prepayments $8,000
Deferred Tax Assets $28,000
TOTAL CURRENT ASSETS $109,000
Non-Current Assets:
Land $80,000
Property, Plant & Equipment $488,000
Acumulated Depreciation -$40,000
TOTAL NON-CURRENT ASSETS $528,000
TOTAL ASSETS $637,000
Current Liabilities:
Current Tax Liability $1,300
90-day Bank Bill Payable $2,000
Accounts Payable $24,000
Bank Overdraft $1,000
TOTAL CURRENT LIABILITIES $28,300
Non-Current Liabilities:
Long-Term Loan $283,000
TOTAL NON-CURRENT LIABILITIES $283,000
TOTAL LIABILITIES $311,300
Equity Capital:
Ordinary Shares $50,000
Retained Earnings 2017 $173,304
Add: Net Profit for the period $102,396
Retained Earnings 2018 $275,700
TOTAL EQUITY CAPITAL $325,700
TOTAL LIABILITIES & EQUITY $637,000
In the books of Chen Marine & Port Group
Balance Sheet
for the year ended 30 June 2018