QUESTION
Question 1: (a). Summary
The financial statement of the company for the period shows all the profits and loss made by the company in year ended March 31, 2011. By referring to the financial statement of the company for the year 2011, it can be seen that the company had positive net operating cash flows. From the table it can be said the company had $133,085 in 2011 and $149441 for the year 2010 for the group company. The net income of any company shows its growth in the market, so the net income of this company as well reflects the continuous growth in the group’s this segment of income in those five years.
(b) In average balance sheet the company included total loan and leases, total deposits, long-term debt, total assets, total shareholder’s equity and common shareholder’s equity. The entire loan and leases of the company registered as $157,500 which again reflects a strong growth in the previous year. Total asset of the company for the year 2011 were of worth $1,609,315, and the total equities was registered as $565,830, whereas the the total liabilities was $1,043,485. this number is 31 march 2011, the question said summarise the balance sheet at 31 september 2011.
(c). The cash flow statement of the company brought the total shareholder’s equity to $565,830 on April 1, 201 and the total shareholder’s equity on September 30, 2011 was $605,161. The asset revaluation reserve of the company was also increased in these years. With the reference of the table of cash flow statement of the organization, it can be seen that treasury stock and retained earnings also increased. this not the summarise of the cash flows
Question 2: The give table of the company gives the analysis for many ratios, including current, liquidity, EBITDA, gross margin, asset turnover ratio, etc.
how did you get the following numbers , please show all the caculations, at last one ratio each for profitability, solvency and liquidity of Ryman Healthcare company
By referring to the latest table of the the company for the year 2011-12, , the interest bearing debt to equity ratio for 2011 is 28%, whereas for 2010, 2009, 2008 and 2007 they were 31%, 35%, 39% and 44%, respectively. This brings all the ratios like Interest Coverage, Leverage Ratio, and Asset Turnover to positive, with 0.3, 0.1 and 0.1, respectively. Moreover, Price/Cash Flow Ratio, Price/Free Cash Flow Ratio and Price/Tangible Book Ratio were reported as 23.6, 1.6 and 2.3.
Additionally with this data, the company showed its summarized data of averages, again showed by many finance reporting websites. According to this table, the return on equity of the company is 5.7%, return on assets is registered as 3.4%, return on invested capital is 3.8, pre-tax profit margin is 3.4% and post-tax profit margin is 7.2%.
Alongside this, it can be analyzed that the company earned profits in this year has made a good market value. In 2011, the company reported the value of its goodwill to be more than $10.4 billion, which was sign of huge growth and also allowed company to secure best positions in the market for coming two to three years.
Question 3: Financial assets, which possibly pending for the company to focuses of credit risk comprise mainly of cash, balances of bank, trade and other receivables and interest rate swaps. The highest credit risk at 31 March 2011 is the main value of these assets. The cash equivalents of the group are positioned with increased quality of credit financial institutions. The Group does not require collateral from its debtors. The Directors mull the exposure of the group exposure to any concentration of credit risk to be minimal, given that (typically) the occupation of a retirement village unit does not take place until an occupation advance has been receive; care fees are payable four weekly in advance when due from residents; and care fees not due from residents are paid by Government agencies. As per the data, the cash and cash equivalents of the company are 667,000,000 and the advances to employees are $80,145.
The Company has signed an interest rate swap contract in order to provide an effective cash flow hedge against floating interest rate variability on a defined portion of core Group debt. At 31 March 2011, there was a contract of interest rate swap in place with a overall estimated main amount of $96.0 million (2010: $70.0 million). There were effective changes in the contract that alters the exposure of the interest rate of the company on the principal of $96.0 million (2010: $70.0 million) from a floating rate to a fixed rate of 5.94% (2010: 6.58%). The fair value of the agreement at 31 March 2011 was a liability of $5.7 million (2010: liability of $4.0 million). The interest rate swap agreement covers notional debt amounts for a term of five years at a composite interest rate of 5.94% (2010: 6.58%).
Question 4: As per the data, the company is presently facing, liquidity risk and the market risk. Liquidity risk is the kind of the risk that the the company will not be allowed to meet its financial obligations as they fall due. The company was to its private investors in the annual report of 2010, which comprised the people, who have already put their money in private-label securitizations, a contractual liability to buyback loan basically happens only if the competitive companies prove that there is a scope of the symbols and warranties that visibly impacts the interest of the investor adversely or securitize all the parties investing in a trust, or that there is a scope of other standards founded by the terms in relation with the sale contract. The analysts at the bank believed to have a extended loan performance, the least possibly representation of underwriting and warranties scope that could have had a visible effect on the performance of the loan that a breach even exists. The Group manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities, and by regularly monitoring forecast and actual cash flows and the maturity profiles of financial assets and liabilities. At balance date the Group had $75.9 million (2010: $71.8 million) of New Zealand dollar undrawn facilities at its disposal to further reduce liquidity risk. In addition there was an undrawn loan facility of AUD$30 million (2010: AUD$Nil). Based on the Group’s average net level of interest bearing debt, the Group and Parent’s profit and equity for the year ended 31 March 2011 would decrease/increase by $430,175 (2010: decrease/increase by $367,040) if there was a movement of plus/(minus) 50 basis points. This is mainly attributable to the Group and Parent’s exposure to interest rates on its variable borrowings.this question asking about some risk relevent to the audit, did you mention anything to audit?
Question 5: By referring to the latest table of the the company for the year 2011-12, , the EBIT (Bodie, Kane and Marcus, 2004) margin is 18.5%, whereas EBITDA margin and pre-tax profit margin were 15.5% and -0.2%, respectively. EBIT is Earnings Before Interest and Tax, and EBITDA means Earnings Before Interest, Tax, Depreciation and Amortization. This brings all the ratios like Interest Coverage, Leverage Ratio, and Asset Turnover to positive, with 1.0, 10.1 and 0.1, respectively. Moreover, Price/Cash Flow Ratio, Price/Free Cash Flow Ratio and Price/Tangible Book Ratio were reported as 1025.3, 1.4 and 0.69.
Additionally with this data, the company showed its summarized data of averages, again showed by many finance reporting websites. According to this table, the return on equity of Bank of America Corporation is 2.7%, return on assets is registered as 0.2%, return on invested capital is 0.95, pre-tax profit margin is 4.4% and post-tax profit margin is 3.8%. The net profit margin on total operations of the organization is reported as 3.8%, the debt/equity ratio is 1.92% and the total debt/equity ratio is 2.49%.
Alongside this, it can be analyzed that the company earned profits in this year has made a good market value. In 2011, the company reported the value of its goodwill to be more than $10.4 billion, which was sign of huge growth and also allowed company to secure best positions in the market for coming two to three years. The recorded goodwill harm charge of the company in Global Card Services is registered to be good and In Home Loans & Insurance section, the company recorded $2.0 billion goodwill impairment charge.Are this related to company Ryman Healthcare? you need caculate the planning materialty using 30 september 2011 financial information, and show all caculations!
Question 6: The company was to its private investors in the annual report of 2010, which comprised the people, who have already put their money in private-label securitizations, a contractual liability to buyback loan basically happens only if the competitive companies prove that there is a scope of the symbols and warranties that visibly impacts the interest of the investor adversely or securitize all the parties investing in a trust, or that there is a scope of other standards founded by the terms in relation with the sale contract. The analysts at the bank believed to have a extended loan performance, the least possibly representation of underwriting and warranties scope that could have had a visible effect on the performance of the loan that a breach even exists. anything related to auditing plan? do you think you answered the question properly?
REFERENCES
Bodie, Z., A. Kane, and A.J. Marcus, Essentials of Investments, McGraw Hill Irwin, 2004, p. 452. ISBN 0-07-251077
Sullivan, Arthur & Steven M. Sheffrin, 2003, “Economics: k. Upper Saddle River”, New Jersey 07458: Pearson Prentice Hall. pp. 51
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