:
Critically review and analyze the assigned company and individually work out a report. The report must be in bullet points with
discussion and must include, but not limited to, the following:
First:
1) The report of the auditors on the annual financial statements
a) Since when was the last review performed?
b) What does the reviewer say -conservative or not conservative?
2) The balance sheet
A. Does the corporation have enough cash ready (see ‘Cash in the bank’ listed under current assets) to pay off its
immediate debt (see creditors)?
B. Is there a schedule for the collection period of accounts receivable? What do you conclude from that?
C. How long can a company continue with its business if it loses all of its financing? (Calculate “survival rate –
continuity”) How does this compare to last year?
3) Calculating income and spending (or profit and loss)
a) Are revenues and expenditures generally balanced? (Look for net income / spending)
b) Is there a noticeable increase or decrease in activity levels (sales) from the previous year?
c) What is the balance of expenses and direct costs against the costs and expenses of management and the Board of
Directors? Is it reasonable for the size and nature of the company?
4) Are there any non-budgeted expenditures that may occur during the rest of the year? Or the next year?
Second:
Assuming that, due to the economic crisis caused by the Corona pandemic and the drop in oil and gas prices, the sales of
the company assigned to you decreased by 10% during the fourth quarter of 2019 and the decline continued in the first
2
and second quarters of 2020. In addition, assume that this situation resulted in a decrease in the company’s net profit by
25% and an increase in the company’s costs and expenses by 35% in the same period mentioned.
A. As an investor and you have an amount of one million Qatari riyals, will you invest in the company designated for
you by buying shares in the current circumstances, and why (knowing that the rate of return on fixed deposits in
banks is 2% annually)? Will you invest in other sectors and companies on the Qatar Stock Exchange, and why?
B. As an investor, will you invest in other sectors and companies on the Qatar Stock Exchange and why?
C. As the director of the company, what decisions will you take to deal with this situation during the year 2020 in
terms of employees, products, prices, promotions, supply and storage chains … etc. in order to control the costs and
expenses of the company, increase sales, and preserve the profits of the company?
D. As the manager of the company, what strategy / business strategies will you follow during the next three years to
deal with the current situation and the expected future situation?
E. As a credit manager in a commercial bank and the company has applied for a loan of 10 million Qatari riyals, will
you agree to the loan in the current circumstances and why
