I have already finished TASK 1 AND TASK 2. I want you to help me with the TASK 3. You will need the information from task 1 and task 2 to finish task 3. I have attached the solution of task 1 and task 2 to the attach file.
In this case we are assuming the role of Sarah McIvor, junior partner with accounting firm Price Waterhouse Coopers. Sarah is given the task of performing a financial review of Gemini at a time when the company is considering expansion.
Task 1: Prepare Statement of Cash Flow for Years 2008 and 2009
Download the Gemini SCF and Ratio Worksheet. This file contains two tabs, one for the Statement of Cash Flow and the other for the Ratios. (In the ATTACH FILE)
Using Exhibits 1 & 2 from the case (Gemini's Income Statement and Balance Sheet), prepare a Statement of Cash Flow for the years 2008 and 2009 using the Worksheet. Figures can be rounded to the millions of dollars.
Task 2: Calculate Ratios for the Years 2008 and 2009
Using Exhibits 1 & 2 from the case (Gemini's Income Statement and Balance Sheet), calculate ratios for the years 2008 and 2009 using the Gemini SCF and Ratio Worksheet. Also include industry averages from Exhibit 4 of the case.
Task 3: Analyze Statement of Cash Flow and Ratios
Using the results from Tasks 1 and 2, prepare a report that analyzes:
Gemini's liquidity, efficiency, solvency and profitability, based on the following:
Which areas improve, or worsen, in 2009 compared to 2008 and relevant industry averages. Link your analysis back to specific case facts where appropriate.
What are implications of this to Gemini or creditors?
Briefly describe your overall impression of Gemini's financial condition based on your ratio analysis.
Gemini's Statement of Cash Flow, based on the following:
What is the largest use and the largest source of cash?
What are the implications of what you have identified in part a. to Gemini? Link your analysis back to case facts where appropriate.
Briefly describe your overall impression of Gemini's financial condition based on your SCF analysis
I have already finished TASK 1 AND TASK 2. I want you to help me with the TASK 3. You will need the information from task 1 and task 2 to finish task 3. I have attached the solution of task 1 and task 2 to the attach file.