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Super Kool industries was established in the late 1990's in the industrial area of Sharjah and manufactures air-conditioners and its components. It...

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Super Kool industries was established in the late 1990’s in the industrial area of Sharjah and manufactures air-conditioners and its components. It is one of the major suppliers of air- conditioner components to several manufactures in neighboring states as well as in North Africa. The Company grew rapidly and enjoyed considerable success. In early 2002, the company went on to expand its manufacturing facilities in anticipation of rapid growth in real estate and to meet the demand for air-conditioners. Mr. Omar Hussein, the Finance manager of the company seemed very unhappy with the recent financial results of the company. He has asked you to submit a report with a detailed analysis of the company’s financial performance. The financial statements and select industry average ratios are given to you. Required: 1- Prepare Common Size Financial statements for “Super Kool Industries” for the two years. 2- Calculate all the relevant ratios for 2009 & 2010. 3- Prepare a comprehensive report evaluating the financial health of the company based on the ratios you have calculated above. 4- Summarize the firm’s overall financial position on the basis of your findings Super Kool Industr Income Statement for the year ended Dec 31 (All Amounts in AED) 2009 2010 Sales Revenue 450,000 520,000 Less: Cost of goods sold 270,000 338,000 Gross Profit 180,000 182,000 Less: Operating expenses 45,000 52,000 EARNINGS BEFORE INTEREST AND TAX 135,000 130,000 Less: Interest Expense 9,000 26,600 EARNINGS BEFORE TAX 126,000 103,000 Less: Tax (30%) 50,400 41,360 EARNINGS AFTER TAX 75,600 62,040
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8403905.xls

a)
Common Size analysis for Super KoolIndustr for the year 2009 and 2010: Super KoolIndustr
Income Statement for the year ended Dec 31
(All Amounts in AED)
Sales Revenue
Less: Cost of goods sold...

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