trm 231.01 financial statements of migros assignment 1

8/6/2019 TRM 231.01 FINANCIAL STATEMENTS OF MIGROS ASSIGNMENT 1

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December 22nd,2008

TRM 231 FINANCIAL ACCOUNTING

ASSIGNMENT 1 :

FINANCIAL STATEMENTS OF MGROS

NEE ROMAN2006104603


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1.Balance Sheet In Summary Form

MIGROS

Summary Consolidated Balance Sheet (YTL)2007 2006 Change (%)

AssetsCurrent Assets 1,626,725 1,002,806 62.2

Non-current Assets 1,203,000 1,787,126 -32.7

Total Assets 2,829,725 2,789,932 1.4

LiabilitiesShort Term Liabilities 1,180,047 1,263,465 -6.6

Long Term Liabilities 180,345 603,498 -70.1

Minority Interests 265 199 33.2

Shareholders' Equity 1,469,068 922,77 59.2

Total Liabilities And Shareholders' Equity 2,829,725 2,789,932 1.4

a.Major Asset Categories And Respective Changes

Notes 2007 2006 % change

Current Assets 1.626.725 57,49% 1.002.806 35,94% 62,2%

Cash and CashEquivalents

4 422.803 14,94% 325.476 11,67% 29,9%

MarketableSecurities(net)

5 566.228 20,01% 159.881 5,73% 254,2%

Inventories(net) 12 400.744 14,16% 394.213 14,13% 1,7%

Non Current Assets 1.203.000 42,51% 1.787.126 64,06% -32,70%

Tangible Assets(net) 19 742.786 26,25% 1.048.927 37,60% -29,20%

The major assets of the company are cash and cash equivalents, marketable securities,inventories and tangible

assets.Marketable securities change significantly from 2006 to 2007.


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b.

Notes 2007 2006 % Change

Short Term Liabilities 1.180.047 41,70% 1.263.465 45,29% -6,6%

Current Portion Of Long Term Debt 6 117.828 4.16% 171.528 6,15% -31,30

Trades Payable(net) 7 871.489 30,80% 907.535 32,53% -4,0%

Long Term Liabilities 180.345 6,37% 603.498 21,63% -70.1%

Financial Liabilities(net) 6 142.663 5.04% 572.060 20,50% -75,10%

Shareholders' Equity 1.469.068 51,92% 922.770 33,07% 59,20%

Share Capital 25 178.030 6,29% 176.267 6,32% 1,00%

Profit Reserves 27 83.962 2,97% 61.816 2,22% 35,80%

Profit For The Year 552.875 19,54% 78.686 2,82% 602,60%

Total Liabilities And Equity 2.829.725 100% 2.789.932 100% 1,40%

Major sources of the assets are shareholders equity and trades payable and financial liabilities. 178.030ytl has

been invested by the owners. 142.663 ytl has been taken from third parties and it has changed significantly from

2006 to 2007 approximately -75%.

2.MGROS TRK TCARET ANONM RKET

Income Statement

Notes 31.12.2007 31.12.2006 Operating Income

Sales(net) 33,36 4.793.359 100,0% 4.272.969 100,0%Cost Of Sales(-) 33,36

(3.598.461

)-75,07 (3.189.957) (75)

Gross Profit 1.194.898 24,93 1.083.012 25 Operating Expenses(-) 37 (981.481) -20,48 (877.926) (21)

Operating Income 33 213.417 4,45 205.086 5 Profit Before Tax and MonetaryGain/Loss

638.414 13 158.055 4 3

Minority Interests 24 (38) (0) (3.755) (0) -


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Profit Before Tax 638.592 155.009 4 3Profit For The Year 552.875 12 78.686 2 6Earnings Per Share 42 3,11 0,44

2.a

2007 2006 %change

Domestic Sales 4.315.477 3.770.817 14,44

Foreign Sales 524.569 553.938 -5,30

Other Sales 20.238 24.837 -18,52

Less: Discounts andReturns -66.925 -76.623 -12,66

Sales Revenue-Net 4.793.359 4.272.969 12,18

Cost Of Sales -3.598.461-

3.189.957 12,81

Gross Operating Profit 1.194.898 1.083.012 10,33

Sales mostly composed of domestic sales. The net sales change 12,18% from 2006 to 2007.

2.b

2007 2006 Change %

General and Administrative Expenses 252.323 25% 248.567 28% 1,51%

Selling And Marketing Expenses 729.158 74% 629.359 72% 15,86%

Total 981.481 100% 877.926 100% 11,80%

According to note 37, most important operating expenses are staff cost and rent expense.Major expenses of the

company didnt change significantly during the period.

2.c

2007 2006 Change %

Sales(net) 4.793.359 100% 4.272.969 100% 12,18

Profit For The Year 552.875 19,54 78.686 2,82 602,6

Profit for the year 552.875ytl. It increased by 474189 ytl over the previous year, corresponds to approximately

%600 increase. Level of profit changed significantly from 2006 to 2007.The reason behind this profit is theincome from sale of joint-venture Ramenka to Enka.( 380.000ytl)


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3.a List of major topics that are disclosed:

NOTE 2 BASIS OF PRESENTATION OF FINANCIAL STATEMENTS

NOTE 3 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

NOTE 4 CASH AND CASH EQUIVALENTS

NOTE 5 MARKETABLE SECURITIES

NOTE 6 FINANCIAL LIABILITIES

NOTE 7 TRADE RECEIVABLES AND PAYABLES

NOTE 8 FINANCE LEASE RECEIVABLES AND PAYABLES

NOTE 9 DUE FROM AND DUE TO RELATED PARTIES

NOTE 10 OTHER RECEIVABLES AND PAYABLES

NOTE 12 INVENTORIES

NOTE 14 DEFERRED TAX ASSETS AND LIABILITIES

NOTE 15 OTHER CURRENT/NON-CURRENT ASSETS AND SHORT/LONG-TERM LIABILITIES

NOTE 16 FINANCIAL ASSETS

NOTE 18 INVESTMENT PROPERTY

NOTE 20 INTANGIBLE ASSETS

NOTE 21 ADVANCES RECEIVED

NOTE 23 PROVISIONS

NOTE 24 MINORITY INTEREST/PROFIT-LOSS OF MINORITY INTEREST

NOTE 25 SHARE CAPITAL/ADJUSTMENT TO SHARE CAPITAL

NOTE 26 CAPITAL RESERVES

NOTE 27 PROFIT RESERVES

NOTE 28 RETAINED EARNINGS

NOTE 29 FOREIGN CURRENCY POSITION

NOTE 31 COMMITMENTS, CONTINGENT ASSETS AND LIABILITIES


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NOTE 34 SUBSEQUENT EVENTS

NOTE 35 - DISCONTINUED OPERATIONS

NOTE 36 OPERATING REVENUE

NOTE 37 OPERATING EXPENSES

NOTE 38 OTHER OPERATING INCOME/EXPENSE AND PROFIT/LOSS

NOTE 39 FINANCIAL EXPENSES

NOTE 40 MONETARY GAIN/LOSS

NOTE 41 TAXES ON INCOME

NOTE 42 EARNINGS PER SHARE

NOTE 43 STATEMENTS OF CASH FLOWS

3.b Note 34 Subsequent Events and Note 35 Discontinued Operations are important things tha are disclosed in the

company. Note 34-35 explains where the year profit comes from. Also operating revenue(note 36) and operating

expense (note 37), operating income shows us the real position of the company.

4. Net sales increased by %12.2 but cost of the sales also increased by %13, so the gross profit decreased from

%25.3 to %24.9. Profit for the year is increased but this increase is not coming from the operating revenue or net

sales of the company. It is coming from the sales of the joint venture Ramenka. From my point of view, we should

evalute the company success without the sales of Ramenka. Without the Ramenkas profit, profit for the year will

be %3.8. (last year it was1.8). In my opinion, Migros should decrease the cost of sales than it will be more

successful.

Also we can look at current ratio 1.626.725/1.180.047= 1.37 which is a good ratio to pay its current liabilities.

Debt ratio 1.360.892/2.829.725= 0.48 is a low debt ratio which is safer ratio and it show us the company will not

have problems when it pays its debts.

trm 231.01 financial statements of migros assignment 1

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