You were asked to evaluate the performance of Jeanswest New Zealand for the financial
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You were asked to evaluate the performance of Jeanswest New Zealand for the financial

QUESTION 1: CASE STUDY AND ANALYSIS AND INTERPRETATION

You were asked to evaluate the performance of Jeanswest New Zealand for the financial years of 2017 and 2018 based on the audited financial statements submitted to the New Zealand’s Companies Office in September 2019. (See attached audited statements of Jeanswest New Zealand).

Required:

a. Complete the table below by calculating and commenting on the profitability, liquidity and solvency ratios for 2018 and 2017 for Jeanswest New Zealand. You need to include the formula and workings for each ratio.


b. Briefly discuss with supporting examples the two main reasons for the demise of Jeanswest New Zealand based on the audited financial statements provided.

c. Identify and briefly explain five main reasons for having “notes to the financial statements” on pages 7-16 by Jeanswest New Zealand.

Jeanswest New Zealand

Hint
Accounts and Finance Probability ratios are used to measure the ability of a company to generate profits from its asset. Liquidity ratios are used in measuring how able a company is in satisfying its short-term obligations. Solvency ratios are used in measuring the ability of a company to meet its long-term obligations like bond obligations and bank loans. ...

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