assignment on corporate finance management 381214

Corporate Financial Management Assignment 1 INSTRUCTIONS TO STUDENTS This Assignment consist of one Question Assignment carries Total of 100 Marks Due Date:Question (100 Marks) The Following financial information related to GlobeMau co: 20X7 20X6 $ $ 000 000 Sales (all on credit) 37400 26720 Cost of Sales 34408 23781 Operating Profit 2992 2939 Finance costs (interest payments) 355 274 Profit before Taxation 2637 2665 20X7 20X6 $ $ $ $ 000 000 000 000 Non Current Assets 13632 12750 Current Assets Inventory 4600 2400 Trade receivables 4600 2200 9200 4600 Current Liabilities Trade Payables 4750 2000 Overdraft 3225 1600 7975 3600 Net Current Assets 1225 1000 14857 13750 8% Bonds 2425 2425 12432 11325 Capital and Reserves Share Capital 6000 6000 Reserves 6432 5325 12432 11325 The average variable overdraft interest rate in each year was 5%. The 8% bonds are redeemable in ten years’ time. Required: Use the above financial information to discuss, with supporting calculations, the financial performance of GlobeMau.