FIN621 FINANCIAL STATEMENT ANALYSIS Assignment 1 Solution & Discussion Fall 2019

SEMESTER FALL 2019

FINANCIAL STATEMENT ANALYSIS (FIN621)
ASSIGNMENT NO. 01

DUE DATE: 27TH NOV, 2019

MARKS: 10

Learning Outcomes

After going through this assignment, the students should be able to:

ü Critically evaluate the elements of balance sheet.

Assignment

Below given is the Balance Sheet of Haider Mills Ltd. The company is involved in the business of Textile and Weaving and is operating as a public limited company since year 2010. 

Requirement

Critically evaluate the Balance Sheet of Haider Mills Ltd and specify your criticism on the items of Balance Sheet which are incorrectly recorded and explain their proper treatment.

For example; 

 Land and building are disclosed net value Rs. 270,000 which is incorrect. The Accumulated depreciation of land and building should be disclosed too.

Haider Textile Limited Balance Sheet For the year ended June 30, 2019
Assets
Current Assets: Cash	70,000
Marketable Securities	27,000
Accounts Receivables, net	50,000
Inventory	35,000
Treasury Stock	17,000
Total Current Assets	199,000
Plant Assets: Land and Building, net	270,000
Investments: Short Term Notes	24,000
Other Assets: Supplies	7000
Total Assets	500,000
Liabilities & Stockholders' Equity
Current Liabilities: Bonds Payable	137,000
Accounts Payable	48,000
Wages Payable	15,000
Total Liabilities	195,000
Stockholders' Equity Common Stock (Rs, 20 par, 20,000 shares authorized, 10,000 shares outstanding	200,000
Retained Earnings	70,000
Redeemable Preferred Stock	30,000
Total Stockholders' Equity	300,000
Total Liabilities and Stockholders' Equity	500,000

IMPORTANT:

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OTHER IMPORTANT INSTRUCTIONS:

DEADLINE:

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RULES FOR MARKING

Please note that your assignment will not be graded or graded as Zero (0), if:

• It is submitted after the due date.
• The file you uploaded does not open or is corrupt.
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• It is cheated or copied from other students, internet, books, journals etc. Note related to load shedding: Please be proactive

Dear students!

As you know that semester activities have started and load shedding problem is also prevailing in our country. Keeping in view the fact, you all are advised to post your activities as early as possible without waiting for the due date. For your convenience; activity schedule has already been uploaded on VULMS for the current semester, therefore no excuse will be entertained after due date of assignments or GDBs.

Solution File:

 FIN621_1_Sol_Fall19_vuworld001.docx