CONTROLE INTERNE ET RISK MANAGEMENT Linde AG

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- What is the market price per share and total market capitalisation at fiscal year end? Why is it different from the $ amount of issued share capital shown on the balance sheet?

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- How much were the total assets at the latest fiscal year-end?

Total Of Assets at the latest fiscal year-end 26167 M£

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- What is the depreciation policy of the company. Where did you find this information?

We found the depreciation policy in the cash flow statements

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- What is the day in inventory for your company?

The inventory for British American Tobacco is in December

- Does the company have any intangible assets? If yes, what are they?

Yes, their is intangible assets :

- Intangible assets

- Computer software

- Goodwill

- Acquired intangible assets

- Other intangible assets

- How much revenue did the company make in the latest fiscal year? By what percentage has the company’s revenue increased/decreased in the latest year?

- The revenue was 13971 £m in 2014 and in 2013 15260 £m; he decreased 8,09%

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- What was the net income for the latest fiscal year? By what percentage has the company's net income increased/decreased in the latest year?

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- For the latest fiscal year, the profil was was 3393 £m and he decreased 19,19%

- How much tax was paid in cash during the fiscal year?

- They paid 1455 £m for tax during the fiscal year

- How much money did the company make in the latest fiscal year? Justify your answer

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- The company make 42506 £m

- What type of cash flow statement does the company produce? Justify your answer.

- The company produces the Cash Flow, from Operations, Investments & Financial Activities

- As can be seen on annexes consolidation "cash flow statement" attached. There is Cash Flow from Operations, Investments & Financial Activities.

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PART 2

Assume that you are the credit manager of a medium-size supplier. The company you are analyzing wants to make credit purchases from your company, with payment due in 60 days.

Instructions

a. Compute the following for the last two fiscal years (round percentages to the nearest tenth of 1 percent, and other computations to one decimal place):

1. Current ratio.

2. Quick ratio.

3. Amount of working capital.

4. Percentage change in working capital from the prior year.

5. Percentage change in cash and cash equivalents from the prior year.

b. On the basis of your analysis in part a, does the company’s liquidity appear to have increased or decreased during the most recent fiscal year? Explain.

c. Other than the ability of the company to pay for its purchases, do you see any major considerations that should enter into your company’s decision? Explain.

d. Your company assigns each customer one of the four credit ratings listed below. Assign a credit rating to the company, and write a memorandum explaining your decision. (In your memorandum, you may refer to any of your computations or observations in part a through c, and to any information contained in the annual report.)

Possible Credit Ratings

A Outstanding Little or no risk of inability to pay. For customers in this category, we fill any reasonable order without imposing a credit limit. The customer’s credit is reevaluated annually.

B Good Customer has good debt-paying ability but is assigned a credit limit that is reviewed every 90 days. Orders above the credit limit are accepted only on a cash basis.

C Marginal Customer appears sound, but credit should be extended only on a 30-day basis and with a relatively low credit limit. Creditworthiness and credit limit are reevaluated every 90 days.

D Unacceptable Customer does not qualify for credit

- Compute the following for the last two fiscal years (round percentages to the nearest tenth of 1 percent, and other computations to one decimal place):

- Current ratio.

Current ratio = current assets / current liabilities

= 9100/8769

=1,03

British American Tobacco PLC has a current ratio of 1.03. It generally indicates good short-term financial strength.

- Quick ratio

Current assets – inventory / current liabilities

= (9100-4133)/8769

=56%

British American Tobacco PLC has a quick ratio of 0.56. It indicates that the company cannot currently fully pay back its current liabilities.

- Amount of working capital.

Working Capital = Current Assets - Current Liabilities

=9100-8769

=331

- . Percentage change in working capital from the prior year.

- Working Capital (2013)= Current