Funtasic Limited Financial Analysis: A Comprehensive Evaluation

ASSIGNMENT
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Table of Contents
Question 1........................................................................................................................................3
Question 2........................................................................................................................................6
Question 3........................................................................................................................................9
Question 4......................................................................................................................................12
References:....................................................................................................................................13
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Questions
Question 1 Comment on the company’s short term and long term financial stability.
Calculate any two ratios you deem most relevant. Suggest courses of action where ratios
are/ are unfavorable.
Answer.Short term financial stability is the short term goal of the organization and provides core
layer or primary stage to achieve long term financial stability of next stage.(Morgan and
Pontines, 2018)
Short term financial stability ofFuntasic Limited has been judged on the basis of Liquidity ratio
especially current ratio determined by dividing current asset with current liabilities (Graham, and
Harvey, 2018).
Following information has been received as per the Annual Report of Funtasic Limited as at 31st July2017
Current Liabilities
Amount($’000
) Current Assets
Amount($’000
)
Trade payables 9213 Cash 664
Interest bearing Liabilities 24597 Receivables 2532
Bill Finance 27965 Inventories 7010
Provisions 671 Other Assets 2744
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Tax Liabilities 117
Assets Classified as held
for sale* 1653
Other Financial Liabilities 87
Other Liabilities 5417
Liabilities classified as held for
sale** 1895
Total Current Liabilities 69962 Total Current Assets 14603
Short Term Financial Stability Ratio of Funtasic Limited as per the Annual Report of July,2017
Current Ratio : Current Assets
Current Liabilities
0.208727595
.
Note:
* Asset classified as held for sale would be consider as part of current assets
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