Professional Documents
Culture Documents
Case Cosmin
Case Cosmin
In order to cover the financing needs, Cosmin negotiated during 2018 with
the bank a short term loan of 300 000 €.
To do:
Based on the balances sheets and the income statements, AND also on
the ratios indicated in the appendix, what do you think about Cosmin?
2
Cosmin CASE – the balance sheet (1)
Cash - 68 000
3
Cosmin CASE – the balance sheet (2)
Equity and Liabilities 2018 2017
Share capital 100 000 100 000
Preferred capital 100 000 200 000
Retained earnings 429 000 264 000
Equity 629 000 564 000
Overdraft 67 000 -
Suppliers 280 000 195 000
Short term bank loan 800 000 500 000
Short term part of mortgage 70 000 50 000
Short term part of financial lease 30 000 25 000
Total current liabilities 1 247 000 770 000
Mortgage 680 000 500 000
Financial lease 180 000 125 000
Total non-current liabilities 860 000 625 000
TOTAL EQUITY AND LIABILITIES 2 736 000 1 959 000
4
Cosmin CASE – the INCOME STATEMENT
2018 2017
5
Appendix : List of ratios to be calculated
• Performance ratios
Net profit margin
Return on equity
Return on assets
Asset turnover
Return on capital employed
• Equilibrium ratios
Capital structure
Long-term debt to equity
Current ratio
Quick ratio
Acid test