Practical case (cash budget

)

The following are forecasted revenues and expenses of MN Company for 2011
Months Jan Feb Mar Apr May June July 12000 00111 00111 00111 01111 01111 01111 Sales Purchases 011 011 0111 0111 0111 0111 01111

Additional information 1) The sale to be paid 70% at current month and the balance will be paid next month. 2) The company has plan to buy land at $3000 to be paid on Apr. 3) The company wish to buy cars at $1000 on June. 4) The rent and salaries to paid monthly $500.

Required to prepare cash budget of MN Company for 7 months.

a. debt ratios: b. Interest coverage = EBIT/ interest expense . Deposit Cash Assets Yemen Bank 200 000 ? 10 000 000 7000 000 ? 150 000 6000 000 2000 000 City Bank 3000 000 ? 20 000 000 15 000 000 ? 200 000 10 000 000 2000 000 Dubai Bank 500 000 ? 30 000 000 20 000 000 ? 300 000 15 000 000 4000 000 Required to evaluate the financial performance of bank as per: 1) Financial leverage Financial leverage: the extent to which a firm relies on debt financing.Case (2) financial performance evaluation Data Total Revenues Net profit Total Assets Total liabilities Equity Total exp.

2) Liquidity 3) Assets Turnover 4) Net Profit Net profit ratio : I t me as u re s t h e over al l profitability o f t h e business . 5) R O I 6) Debt / Equity Ratio .

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