You are to calculate the following ratios from the information that has been provided to you for Bella Confectionery Company Ltd and complete a ratio analysis (4 marks)
- You are then also required to choose a company listed on the ASX in the similar industry and complete a competitor analysis. (4 marks)
- Discuss the likelihood of failure of Bella Confectionery. (2 marks)
PART A CONTINUED
| BELLA CONFECTIONERY | YOUR CHOSEN ASX COMP | ||||
| 20X0 | 20X9 | ||||
| Ratios | |||||
| Current Ratio | Current assets | ||||
| Current Liabilities | |||||
| Debt to equity | Debt | ||||
| Equity | |||||
| Profit before tax/sales | Profit before tax | ||||
| Sales | |||||
| Gross margin | Gross profit | ||||
| Sales | |||||
| Inventory turnover | Cost of goods sold | ||||
| Average inventory | |||||
PART B – 10 MARKS
1. Discuss the potential Audit and Engagement Risk involved for the auditor of Bella Confectionery. (5 marks)
2. Discuss the Inherent Risk associated with Bella Confectionery Company . (5 marks)
ACCT 2161 AUD….doc
annual report….xls
Aug12 AUASB B….pdf