INDEPENDENT UNIVERSITY, BANGLADESH

School of Business
TERM ASSIGNMENT

Semester Course Code Course Title Section

SUMMER ACN 305 FINANCIAL 01
2019 ACCOUNTING

Submission Date: TO BE ANNOUNCED IN CLASS

Total Marks: 10
Instructor: Md. Safiuddin

General instructions:
Font: Times new roman Size: 12 Line space: 1.5 Select all and Use Control ‘J’ for
line alignment.

Specific instructions:
You are required to collect annual reports of the selected two companies for the
financial years ending on June 30, 2017 and 2018.

From the annual reports you will be required to conduct an analysis of the financial
statements with emphasis on the balance sheet liabilities and equity section. This
analysis is to be carried out based on your knowledge from your Financial
Accounting lessons.

While analyzing the balance sheet the following the area needs to be addressed.

1. What is the composition of the current liabilities of the studied companies?

Segregate the current liabilities into trade payables, short term debts,
employee related liabilities, tax liability, and other. Make comparative
analysis of the two companies under study.

2. What is the composition of the non-current liabilities of the studied

companies? Segregate the non-current liabilities into long-term debts,
employee related liabilities, tax liability, lease related liability, and other.
Make comparative analysis of the two companies under study.

3. What is the composition of shareholders’ equity of the studied companies?

Segregate the shareholders’ equity into common stock capital, preferred
stock capital, share premium, reserve and surplus, retained earnings. Make
comparative analysis of the two companies under study.

4. Using the ratios given below conduct solvency analysis for the companies
and comment on their performance

a. Debt to assets ratio

b. Long term debt to assets ratio
c. Debt to equity ratio

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 5. Using ratios given below conduct profitability analysis and comment on the
performance of the companies

a. Return on total capital

b. Return on equity

6. Using the following ratios conduct the liquidity analysis and comment on the
performance of the companies
a. Current ratio
b. Acid test ratio
c. Net working capital

7. Using the following ratios given below, wherever applicable comment

a. Basic Earnings per share

b. Diluted earnings per share
c. Book value per share
d. Price to earnings ratio
e. Dividends per share (DPS)
f. Dividend payout ratio

8. Conclude, by providing final comments to your analysis of the liabilities and

equity section of the balance sheet.

Attachment:
You need to attach printed copies of the balance sheet and relevant notes and disclosures
(topics related) of assigned companies with your report.

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 For question 4,5,6,7 use the following template to calculate ratios.

SL no
Ratios Formula ABC Co Result DEF Co Result comment
1. Debt to Total Total debt = 200000 Total debt
asset ratio debt / Total assets = 500000 0.40 = 150000
total Total assets 0.30
assets = 500000

2.

3.

4.

5.

6.

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