bản tiến anh môn kế toán tài chính (MBM)

TOPIC: ANALYSIS OF FINANCIAL ACCOUNTING DOMESCO MEDICAL IMPORTEXPORT JOINT STOCK COMPANY Comparison of financial statements between January 1st, 2010 with December 31st, 2010 DOMESCO MEDICAL IMPORT EXPORT JOINT STOCK COMPANY I. Financial statement analysis: In general meaning, financial statement analysis mentions the art of analysis and the explanation of financial statements. It applies tool and analytical technique to financial statements and relevant documents in order to draw useful estimations and conclusions for business decisions. It is a selective tool to chose “candidates” for investment or merger. It is also a tool to foresee conditions and consequences of the finance in the future

MÔN HỌC: TRAINING PROGRAM OF GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION FINAL TEST OF FINANCIAL ACCOUNTING Lecturer: A.P Dr HA XUAN THACH Student: NGUYEN DO THANH TP. HCM 2012 TOPIC: ANALYSIS OF FINANCIAL ACCOUNTING DOMESCO MEDICAL IMPORT-EXPORT JOINT STOCK COMPANY Comparison of financial statements between January 1st, 2010 with December 31 st, 2010 DOMESCO MEDICAL IMPORT EXPORT JOINT STOCK COMPANY Address: No 66, Highway 30, My Phu Ward, Cao Lanh Ciy, Dong Thap Province . BALANCE SHEET ACCOUNTING st On December 31 , 2010 Asset Price unit: VND Code Descrip 31/12/2010 01/01/2010 404,658,371,352 22,821,815,791 344,665,015,631 32,635,944,465 22,821,815,791 32,635,944,465 tion A. Short-term asset 100 I. Cash and cash equivalents 110 1. Cash 111 II. Short-term investment 120 5.2 - 4,211,794,000 1. Short-term investment 121 4.6 - 10,330,950,000 2. Provision for devaluation of short-term investment III. Short-term receivables 129 130 4.6 200,920,920,568 148,865,799,485 1. Receivables for customers 131 194,073,520,045 143,403,792,119 2. Advances for sellers 132 9,088,206,432 2,317,434,750 3. Other receivables 135 5.3 4,016,671,775 4,401,062,376 4. Provision for bad short-term debts 139 4.4 (6,257,477,684) (1,256,489,760) IV. Inventory 140 4.3, 5.4 167,376,698,750 152,552,800,868 1. Inventory 141 167,376,698,750 152,552,800,868 4.1, 5.1 (6,119,156,000) V. Other short-term assets 150 1. Short-term prepaid expenses 151 2. VAT deducted 152 3. Other short-term asset 158 B. Long-term asset 200 I. Fixed asset 220 1. Tangible fixed asset 221 - Original price 5.5 5.6 13,538,936,243 6,398,676,813 3,569,235,062 1.663.871.449 3,006,508,826 1,476,763,421 6,963,192,355 3,258,041,943 305,311,235,452 268.263.596.854 222,070,055,976 186,379,478,808 130,454,112,474 98,367,745,001 222 204,968,122,293 155,373,011,712 - Accumulated depreciation 223 (74,514,009,819) (57,005,266,711) 2. Intangible fixed asset 227 37,979,161,872 21,899,901,794 - Original price 228 38,437,473,245 22,039,345,412 - Accumulated depreciation 229 (458,311,373) (139,443,618) 3. Construction in progress 230 53,636,781,630 66,111,832,013 II. Long-term financial investment 1. Investment in associated company, joint venture 2. Long-term investment 3. Provision for devaluation of long-term financial investment III. Other long-term asset 250 252 258 259 1. Long-term prepaid expenses 261 Total assets 4.5, 5.7 4.5, 5.8 5.9 4.6, 5.10 4.6, 5.11 4.6, 5.12 260 4.8, 5.13 270 78,213,960,000 73,570,200,000 4,643,760,000 - 78,158,000,000 69,000,000,000 10,208,000,000 (1,050,000,000) 5,027,219,476 3,726,118.046 5,027,219,476 3,726,118,046 709,969,606,804 612,928,612,485 Capital A. Liabilities 300 208,065,199,380 137,100,651,741 I. Short-term debt 1. Short-term loan and debt 2. Payables for seller 3. Deposit 4. Taxes and payables for the state 5. Payables for labor 6.Other short-term payables and receivables 310 311 312 313 314 315 319 192,916,685,483 70,819,739,361 72,396,892,281 8,783,936,312 19,083,402,707 16,885,274,946 4,947,439,876 135,460,967,942 33,720,226,995 65,310,106,908 14,120,070,708 9,272,558,518 9,685,308,104 3,352,696,709 II. Long-term debt 1. Other long-term payables 2. Long-term loans and debts 3. Provision for allowance of unemployment 330 333 334 336 15,148,513,897 3,417,660,752 11,541,101,700 189,751,445 1,639,683,799 1,485,288,063 154,395,736 5.14 5.15 5.16 5.17 5.18 4.9 400 4.10 501,904,407,424 475,827,960,744 410 411 412 414 417 418 420 5.19 497,252,696,252 178,093,360,000 229,275,000,000 (15,737,386,.415) 33,053,413,153 10,560,423.609 62,007,885,905 471,091,959,890 137,699,990,000 229,275,000,000 (10,925,191,085) 59,962,318,020 7,557,455,320 47,522,387,635 II. Other expenses and funds Reward fund and welfare 430 431 5.20 4,651,711,172 4,651,711,172 4,736,000,854 4,736,000,854 Total capital 440 709,969,606,804 612,928,612,485 B. Equity I. 1. 2. 3. 4. 5. 6. Equity Equity capital Share premium Treasury stock Investment and development funds Provision for financing Retained earnings General Director Chief Accountant Huynh Trung Chanh Pham Ngoc Tuyen REPORT OF BUSINESS PERFORMANCE On December 31st, 2010 Criteria Price unit: VND Code Description 2010 2009 1. Sale revenue and service supply 01 4.11, 6.1 1,071,895,125,105 941,224,745,266 2. Revenue deductions 02 6.2 3,997,822,113 3,464,132,427 3. Net revenue from goods and service 10 6.3 1,067,897,302,992 937,760,612,893 4. Original price of goods sold and service 11 6.4 750,295,758,943 677,519,918,845 5. Gross profits from sales and services 20 317,601,544,049 260,240,693,994 6. Revenue from financial activities 7. Financial expenses - In which: Cost of interest 8. Cost of sale 9. Cost of business management 21 22 23 24 25 7,410,029,139 6,714,971,345 5,153,557,779 120,152,210,215 93,890,709,242 9,839,072,775 27,629,845,448 4,909,839,189 92,538,541,721 75,631,093,830 10. Net profit from business operation 30 104,253,682,386 74,280,285,770 11. Other income 12. Other expense 31 332 12,973,462,864 5,039,081,288 235,763,868 21,948,932 13. Other profit 40 7,934,381,576 213,814,936 14. Pretax profit 50 112,188,063,962 74,494,100,706 15.Current tax expense 51 35,825,597,903 11,688,745,821 16. Deferred tax 52 - - 17. Profit after tax 60 76,362,466,059 62,805,354,885 18. Basic interest per share 70 4,349 4,563 4.11, 6.5 4.12, 6.6 4.7 6.7 6.8 6.9 6.10 4.13, 6.11 6.12 General Director Chief Accountant Huynh Trung Chanh Pham Ngoc Tuyen CASH FLOW STATEMENT Price unit : VND On December 31st, 2010 Criteria Cash flow from business operation Pre-tax profit Adjustment for items Depreciation of fixed asset Provisions Unrealized (interest)/loss of exchange rate difference (interest)/loss from investment activities Cost of interest Profit from business operation before change Floating capital (increase)/decrease receivables Increase )/decrease inventory Increase /decrease) payables Increase )/decrease prepaid expenses Interest paid on loan Business tax paid Other receivables from business operation Other receivables from business operation Net cash flow from business operation Net cash flow from investment activities Payables for purchase, build fixed asset and other long-term asset Receivables from liquidation, sale of fixed assets and other long-term asset Cash for borrow, purchase of debt instruments of other entities Proceeds from loans, sale of debt instruments of other entities Payments for investment, capital contribution to other entities Proceeds from loans, dividends and divided profits Net Cash flow from investment activities Cash flow from financial activities Payments for capital contribution for owners, acquisition of released business share Short-term, long-term loans receivable Payments for the original loan Dividend, profit payable for owners Net cash flow from financial Net cash flow in term Cash and cash equivalents in beginning of the term The influence of the change of exchange rates for foreign currency exchange Cash and cash equivalents at the end of the term General Director Huynh Trung Chanh Co de 2010 2009 01 112,188,063,962 74,494,100,706 02 03 04 05 06 08 18,054,891,706 (2,168,168,076) 569,969,388 (7,019,180,251) 5,153,557,779 126,779,134,508 15,729,744,537 6,221,127,406 (68,176,168) 5,513,125,377 4,909,839,189 106,799,761,047 09 10 11 12 13 14 15 16 20 (62,291,004,824) (14,823,897,882) (950,473,465) (3,196,731,043) (5,097,695,767) (25,095,660,054) 2,613,460,864 (12,439,696,241) 5,497,436,096 (21,910,037,908) 60,205,540,001 (43,530,715,255) (302,865,195) (4,909,839,189) (6,047,866,901) 1,735,342,500 (13,246,978,420) 78.792.340.680 21 22 23 24 25 27 30 (54,917,211,311) 12,818,681,818 (295,860,000) 11,919,147,100 (4,570,200,000) 3,509,886,275 (31,535,556,118) (68,930,412,927) 13,890,909 (15,667,725,402) 10,998,123,100 (60,000,000,000) 2,809,320,961 (130,776,803,359) 32 (4,812,195,330) (10,925,191,085) 33 34 36 40 50 60 61 70 193,531,731,169 (144,891,117,103) (27,034,458,000) 16,793,960,736 (9,244,159,286) 32,635,944,465 569,969,388 22,821,815,791 92,357,545,565 (61,472,902,565) (27,407,198,000) (7,447,746,085) (59,432,208,764) 91,999,977,061 68,176,168 32,635,944,465 Chief Accountant Pham Ngoc Tuyen I. Financial statement analysis: In general meaning, financial statement analysis mentions the art of analysis and the explanation of financial statements. It applies tool and analytical technique to financial statements and relevant documents in order to draw useful estimations and conclusions for business decisions. It is a selective tool to chose “candidates” for investment or merger. It is also a tool to foresee conditions and consequences of the finance in the future Financial statement analysis is a diagnostic device when it assesses operations of investment, finance and business. It is used to evaluate management and other business decision . Financial statement analysis is not only a calculation process of numbers but also a process of review, examination, collation and comparison of current financial result of the company between the present with the past in order to evaluate the financial situation of the company, what the company have done exactly, and obtain the potentials, expect what things will happen and then suggest methods in order to take full advantage of the strength and overcome the weakness. On the other hand, it is necessary for financial statement analysis to make above these data can “speak” in order for users to understand clearly financial situation of the business and the objective, plan of managers of such businesses The purpose of financial statement analysis is to provide the useful information for investors, creditors and other users to make their own decisions about investment, credit and similar decision. The information needs to be easy to understand for those who want to research these information but they have relative level on business and economic activities. At the same time it helps investors, creditors and other users assess the quantity, time and risk of receivables from dividend or cash II. Analysis of account balance of DOMESCO company Every year, most of people come to the doctor to check their overall health - a physical condition check-up at a certain time. Similarly, balance sheet of accounting is an integrated financial situation of the companies at a certain time, usually the end of the month, quarter or ending of fiscal year. In fact, the balance sheet shows the assets are managed by the company and providing funds for these assets - by using capital of those who granting loans (liabilities), capital contributed from owners, or from both sources. The balance sheet is reflected in the two following accounting equation: Assets = Liabilities + Equity Table of figure analysis of account balance Using 01/01/ 2010 (2009) as original basis to compare and analyze finance of 2009 and 2010. Target Cod 2010 2009 Amount Ratio e ASSETS Short term assets Cash and relevant amounts Amounts for short term financial 100 110 120 404,658,371,352 22,821,815,791 - 344,665,015,631 32,635,944,465 4,211,794,000 59,993,355,721 -9,814,128,674 - 0.174 -0.301 - investment Short term receivable accounts Inventory Short term assets Long term assets Fixed assets Amounts for long term 130 140 150 200 220 250 200,920,920,568 167,376,698,750 13,538,936,243 305,311,235,452 222,070,055,976 78,213,960,000 148,865,799,485 152,552,800,868 6,398,676,813 268,263,596,854 186,379,478,808 78,158,000,000 52,055,121,083 14,823,897,882 7,140,259,430 37,047,638,598 35,690,577,168 55,960,000 0.350 0.097 1,116 0.138 0.191 0.001 260 5,027,219,476 3,726,118,046 270 709,969,606,804 612,928,612,485 SOURCE OF CAPITAL 1,301,101,430 97,040,994,319 0.349 0.158 Liabilities 300 208,065,199,380 137,100,651,741 70,964,547,639 0.518 Short term liability 310 192,916,685,483 135,460,967,942 57,455,717,541 0.424 Long term liability 330 15,148,513,897 1,639,683,799 13,508,830,098 8.239 Owner’s capital 400 501,904,407,424 475,827,960,744 26,076,446,680 0.055 Owner’s capital 410 497,252,696,252 471,091,959,890 26,160,736,362 0.056 Other expenses 430 4,651,711,172 4,736,000,854 -84,289,682 -0.018 Total source of capital 440 709,969,606,804 612,928,612,485 97,040,994,319 0.158 investment Other long term assets Total Assets financial Horizontal analysis The assets : Current assets in 2010 increased 17.4% of VND 59,993,355,721 respectively compared to original year 2009 is 100%. Cash and amounts similar to cash decreased 30.1% compared with original year 2009. Meanwhile, short term accounts receivable increased 35% in 2010, inventories increased 9.7% in 2010; other short term assets also increased 111.6% compared to original year 2010 is 100%. It shows that the main field of the company is production and trade. Fixed assets increased by 19.1% in 2010, equivalent to VND 35,690,577,168 compared to original year 2009 is 100%. Long-term financial investment barely increased, just increased 0.1% in 2010 and other long term assets increased 34.9% in 2010 compared to original year 2009 is 100%. This demonstrates that the company is interested in expanding business activities to strengthen competition in the marketplace. The capital source : In 2010, liabilities increased 51.8% , equivalent to VND 70,964,547,639 compared to original year 2009 of 100% because short-term and long-term liabilities all increased. It shows that the company increased business scale by using short-term funds. Owner’s capital equivalent to VND 26,076,446,680 in 2010 compared to original year 2009 increased 5.5% is 100%. This proves business result is effective. II. Analysis of table of business activities report of DOMESCO company: The report of business results, also known as interests/ loss report reflects the status and results of business activities as well as the implementation of responsibilities and obligations of the enterprises toward the State in an accounting period. Through the targets of report of business results, we can check, analyze and evaluate the status of implementation of the plan, estimate the cost of production, cost price, product sales, material consumption, situation of cost and income of other activities and business results after an accounting period. Through data of report of business result, we can check the status of implementation of responsibilities and obligations of the enterprises toward the State and other taxes and other payables. Through the report of results of business operations, we can assess the trend of enterprise development in the future. Analysis of figures of report of business result Using 01/01/ 2010 (2009) as original basis to compare, analyze finance of 2009 and 2010. 10 11 Target Cod 2010 2009 Amount Rate e 1. Revenue of sales and service supplement 01 1,071,895,125,105 941,224,745,266 130,670,379,839 0.1381 2. Discount amounts of revenue 02 3,997,822,113 3,464,132,427 533,689,868 0.1541 3. Net revenue from goods and services 10 1,067,897,302,992 937,760,612,893 130,136,690,099 0.1387 4. Cost price for goods and services 11 750,295,758,943 677,519,918,845 72,775,840,098 0.1074 5. Total profit from sales and service supplement 20 317,601,544,049 260,240,693,994 6. Revenue from financial activities 21 7,410,029,139 9,839,072,775 -2,429,043,636 -0.2469 7. Financial expenses 22 6,714,971,345 27,629,845,448 -20,914,874,103 -0.7570 - Including: Loan interest cost 23 5,153,557,779 4,909,839,189 243,718,590 0.0496 8. Sales cost 24 120,152,210,215 92,538,541,721 27,613,668,494 0.2984 9. Business management cost 25 93,890,709,242 75,631,093,830 18,259,615,412 0.2414 10. Net profit from business activities 30 104,253,682,386 74,280,285,770 29,973,396,616 0.4035 11. Other income 31 12,973,462,864 235,763,868 12,737,698,996 54,0273 12. Other costs 332 5,039,081,288 21,948,932 5,017,132,356 228,207 57,360,850,055 0.2204 13. Other profit 40 7,934,381,576 213,814,936 7,720,566,640 14. Total accounting profit before tax 50 112,188,063,962 74,494,100,706 15. Expense of current enterprise income tax 51 35,825,597,903 11,688,745,821 24,136,852,082 2,0650 16. expense of deferred enterprise income tax 52 - - - - 17. Profit after enterprise income tax 60 76,362,466,059 62,805,354,885 13,557,111,174 0.2159 18. Basic profit of stock 70 4,349 4,563 -0.214 0.0469 37,693,963,256 Based on above analysis table, the business situation of DOMESCO company has profit after tax of VND 76,362,466,059 ,increasing 21.59% compared to original year 2009. This is a good sign shows that company works rather highly effectively. III. Analysis of table of flow of cash of DOMESCO company Based on current accounting regime, the cash flow statements is not mandatory financial report. It is only guidelines. Thus the state should soon force the enterprises to make report of cash flow when presenting the financial information to the subjetcs for the following reasons: Currently, investors, lenders, suppliers, managers, etc . including the State concern about the financial situation of the business and events, the economic transactions that affect financial status of the 12 36,1086 0.5060 enterprises. Investors and managers want to know if the enterprises have enough cash to meet the business opportunity or not, potentially dominant in the new business opportunities arise or not? Lenders want to know whether the business can repay the loan on time or not? Therefore, financial information of business can help the enterprises make their economic decisions. To meet that requirement, enterprises must prepare a financial report with integrated- specific content about money flow into the business as well as the money flow out of its in an certain accounting period. Analysis of figures of table of money flow Using 01/01/ 2010 ( 2009) as original basis to compare , analyze finance of 2009 and 2010. 13 TARGET code 2010 2009 Amount Ratio 01 112,188,063,962 74,494,100,706 37,693,963,256 0.5060 Depreciation of fixed assets 02 18,054,891,706 15,729,744,537 2,325,147,169 0.1478 Provision amounts 03 (2,168,168,076) 6,221,127,406 -4,052,959,330 -0.6515 (Interests)/loss difference of exchange rate has not 04 569,969,388 (68,176,168) 501,793,220 7,3604 implemented 05 (7,019,180,251) 5,513,125,377 1,506,054,874 0.2732 (Profit)/loss from investment activity 06 5,153,557,779 4,909,839,189 243,718,590 0.0496 Cost of loan interest 08 126,779,134,508 106,799,761,047 19,979,373,461 0.1871 Floating capital 09 (62,291,004,824) (21,910,037,908) 40,380,966,916 1,8430 (Increase)/ decrease in accounts receivable 10 (14,823,897,882) 60,205,540,001 -45,381,642,119 -0.7538 Increase)/ decrease in inventory 11 (950,473,465) (43,530,715,255) -42,580,241,790 0.9781 Increase)/ decrease in accounts payable khoản phải 12 (3,196,731,043) (302,865,195) 2,893,865,848 9,5550 trả 13 (5,097,695,767) (4,909,839,189) 187,856,578 0.0383 14 (25,095,660,054) (6,047,866,901) 19,047,793,153 3,1495 Loan interest had been paid 15 2,613,460,864 1,735,342,500 878,118,364 0.5060 Enterprise income tax has been paid 16 (12,439,696,241) (13,246,978,420) -807,282,179 0.0609 Other income from business activity 20 5,497,436,096 78.792.340.680 -73,294,904,584 -0.9302 21 (54,917,211,311) (68,930,412,927) -14,013,201,616 -0.2033 22 12,818,681,818 13,890,909 12,804,790,909 921,8109 23 (295,860,000) (15,667,725,402) -15,371,865,402 -0.9811 I. Flow of money from business activities Profit before tax Adjustment for accounts Profit from business activity before change Increase)/ decrease in cost paid in advance Other income from business activity Flow of net amount from business activity II. Flow of money from investment activity 14 Expense for purchasing, building fixed assets and other 24 11,919,147,100 10,998,123,100 921,024,000 0.0837 long term assets 25 (4,570,200,000) (60,000,000,000) -55,429,800,000 -0.9238 Income from liquidation, transfer of fixed assets and 27 3,509,886,275 2,809,320,961 700,565,314 0.2494 other long term assets 30 (31,535,556,118) (130,776,803,359) -99,241,247,241 -0.7589 32 (4,812,195,330) (10,925,191,085) -6,112,995,755 -0.5595 instruments to other units 33 193,531,731,169 92,357,545,565 101,174,185,604 1,0955 Expense for investement, distribution of capital to other 34 (144,891,117,103 (61,472,902,565) 83,418,214,538 1,3570 units 36 ) (27,407,198,000) -372,740,000 0.0136 Amount of money from granting loan interest, dividend 40 (27,034,458,000) (7,447,746,085) 9,346,214,651 1,2550 and profit divided 50 16,793,960,736 (59,432,208,764) -50,188,049,478 -0.8445 Flow of net money from investment activity 60 (9,244,159,286) 91,999,977,061 -59,364,032,596 -0.6453 61 32,635,944,465 68,176,168 501,793,220 7,3602 70 569,969,388 32,635,944,465 -9,814,128,674 0.3007 Amount of money for loan, purchasing debt instruments of other units Amount of money from granting loan, selling debt III. Flow of money from financial activity Amount for paying capital distribution to owners, buying shares of the enterprises issued. Short term-long 22,821,815,791 term loan Amount for paying loan debt Dividend, profit paid to owners Flow of net amount from financial activity IV. Flow of net amount of money in the period Money and relevant money of the beginning of the period 15 Influence of change in exchange rate of foreign currency Money and relevant money of the ending of the period 16 General evaluation of the financial situation of DOMESCO company through report of cash flows. Firstly, we need to evaluate the difference between revenues and expenses from business activities: in 2009, VND 497,436,096 , company’s revenue is greater than its expenses, original year 2009 VND 78,792,340,680 company’s revenues is more than expenses. Compared with 2009, in 2010 the company’s expense is greater its turnover, approximate of 93.02% compared to those of 2009. Net cash flows from negative investment activities shows that , the scale investment of DOMESCO is increasingly greater. Since this is the result of investment in purchasing fixed assets, other assets, granting loans - buying the debt instruments of other entities, costs of investments in other entities. Net cash flow from financial activities, original year 2010 received external funding with a total of VND 16,793,960,736 and the Company may be dependent on external financial supporters. Thus, the financial situation of DOMESCO is generally stable, with the investment in scale expansion , while also paying dividends to the owners and purchasing shares. V. Analysis financial status of DOMESCO company through coefficients: 1. Coefficients reflect the capability of payment. Fast solvency coefficient: current solvency coefficient current does not reveal all the solvency of the business. Investors, lenders always raise the question : If all the short-term debt is required : Current solvency coefficient : The relationship between Working assets ( TSLĐ) and short-term investments with short term liabilities. It demonstrates the ability to convert assets into cash in a short period of time ( production reserve capital -> production capital -> capital in payment and cash funds. When collecting money, it ends a cycle. The faster working capital demonstrates, the more efficient the capital usage is and in contrast. Rotations of working capital cycle 2010 – 2009 = Net income / The average balance of working capital (beginning of period + ending of period)/2 = 1.067.897.302.992 / (404.658.371.352 + 344.665.015.631)/2 = 1.42 rounds Days of working capital rotation = Days of period / Rotations of working capital = 360 / 1.42 = 253.52 days Thus, the capital of DOMESCO in 2010 turned 1.42 rounds and turned per round 253.52 days. Efficiency of property usage: This business process ultimately is the profit-seeking process. In order to achieve maximum profit in the able conditions and scope, the company has to use thoroughly the assets of the business process to save capital. The efficiency of property usage will show the benefit when using a dong of assets involving in the business process creating how much net income or profit? The greater it is, the higher efficiency of assets usage is or in contrast. Efficiency of property usage 2010 – 2009 = Net income / Assets (beginning of period + ending of period) /2 = 1.067.897.302.992 / (709.969.606.804 + 612.928.612.485) /2 = 0.813 This proves that on average, a copper of property involving in the business process will create 0.813 in 2010. 19 Indexes reflect the profitability: The greater indicators are, the higher profitability is. Profit on sales: shows that 100 dongs will create how much profit Profit on sales 2010 = Profit /Net income = 104.253.682.386/ 1.067.897.302.992 = 9.76 % Profit rate on capital: shows that on average, 100 dongs of capital involving in business operation will create how much net profit (or gross profit ) ? Profit rate on capital 2010 - 2009 = Profit / Average value of assets = 104.253.682.386 / (709.969.606.804 + 612.928.612.485) /2 = 15.88 % Rate of profit on equity: Shows that on average, 100 dongs spent on business will create how much gross profit? Rate of profit on equity 2010 – 2009 = Profit / Average equity = 104.253.682.386 / (501.904.407.424 + 475.827.960.744) /2 = 21.33 % This calculation indicates that: 100 dongs in net revenue with 9.76 dongs of profit. DOMESCO used 100 dongs of capital for the business process gained 15.88 dongs of profit and the owner would profit 21.33 of dongs profit in 2010. C. Conclusion. Overall, the business of DOMESCO is good. Benefits brought to the owner in 2010 was higher 21.33%, although in 2010, we were still affected by the economic crisis, the index of financial statements showed that the business of the company remained positively. References 1. Financial Accounting Curriculum. 2. Financial statement information of DOMESCO medical import-export company. 3. Finance for Managers – First News and HCM City Tong hop Publisher. 20 4. http://vi.wikipedia.org/wiki/B%C3%A1o_c%C3%A1o_k%E1%BA%BFt_qu %E1%BA%A3_kinh_doanh 5. http://www.kienthuctaichinh.com 6. http://www.vinabook.com/phan-tich-cac-bao-cao-tai-chinh-ly-thuyet-bai-tap-vabai-giai-m11i27797.html 21 [...]... information of DOMESCO medical import-export company 3 Finance for Managers – First News and HCM City Tong hop Publisher 20 4 http://vi.wikipedia.org/wiki/B%C3%A1o_c%C3%A1o_k%E1%BA%BFt_qu %E1%BA%A3_kinh_doanh 5 http://www.kienthuctaichinh.com 6 http://www.vinabook.com/phan-tich-cac-bao-cao-tai-chinh-ly-thuyet-bai-tap-vabai-giai-m11i27797.html 21 . MÔN HC: 1 TRAINING PROGRAM OF GLOBAL ADVANCED MASTER OF BUSINESS ADMINISTRATION FINAL TEST OF FINANCIAL ACCOUNTING Lecturer: A.P Dr HA XUAN THACH Student: NGUYEN DO THANH TP DOMESCO MEDICAL IMPORT EXPORT JOINT STOCK COMPANY Address: No 66, Highway 30, My Phu Ward, Cao Lanh Ciy, Dong Thap Province. BALANCE SHEET ACCOUNTING On December 31 st , 2010 Price unit: VND Asset. 4,736,000,854 4,736,000,854 Total capital 440 709,969,606,804 612,928,612,485 General Director Huynh Trung Chanh Chief Accountant Pham Ngoc Tuyen REPORT OF BUSINESS PERFORMANCE On December 31 st , 2010