MKBerry Is the Managing Director of CE Ltd

question 172

Essay

M.K.Berry is the managing director of CE Ltd.a small,family-owned company that manufactures cutlery.His company belongs to a trade association that publishes a monthly magazine.The latest issue of the magazine contains a very brief article based on the analysis of the accounting statements published by the 40 companies that manufacture this type of product.The article contains the following table:
CE Ltd's latest financial statements are as follows:
The country in which the company operates has no corporate income tax.No dividends were paid during the year.All sales are on account.

Required:
a)Calculate each of the ratios listed in the magazine article for this year for CE,and comment briefly on CE Ltd.'s performance in comparison to the industry averages.
b)Explain why it could be misleading to compare CE Ltd.'s ratios with those taken from the article.

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Definitions:

Intrinsic Rewards

Rewards that come from within an individual, such as personal satisfaction or the joy of performing a task.

Extrinsic Rewards

Benefits provided by external factors, such as money, grades, or recognition, that motivate individuals to perform certain tasks.

Measurement Errors

Errors or inaccuracies that occur in the process of measuring or recording data, affecting the results' accuracy.

Performance Appraisal

A systematic evaluation process by which employees' job performance is rated and assessed by their supervisors.