Section A: Case Analysis (40 marks) Answer ALL questions. The followings are the financial statements (statement of fina

[answerhappygod]

Section A Case Analysis 40 Marks Answer All Questions The Followings Are The Financial Statements Statement Of Fina 1 (264.12 KiB) Viewed 43 times

Section A: Case Analysis (40 marks) Answer ALL questions. The followings are the financial statements (statement of financial position and consolidated income statement) for Aeon Stores (Hong Kong) Co., Limited' and Lifestyle International Holdings Limited?. (a) Perform vertical analysis for the two companies for the years of 2019 and 2020. (12 marks) (b) Perform ratio analysis for the two companies for the year ended 31 December 2020. The scope of analysis should include liquidity, profitability, and solvency. Please show the workings of the ac- counting ratios. (14 marks) (©) Recommend with reasons which company is considered to have better financial performance. (14 marks) Aeon Stores (Hong Kong) Co., Limited: CONSOLIDATED STATEMENT OF PROFIT OR LOSS FOR THE YEAR ENDED 31 DECEMBER 2020 2020 HK$'000 2019 HK$'000 NOTES 5 7 8 9,493,774 545,918 27.430 Revenue Other income Investment income Interest income from rental deposits Purchases of goods and changes in inventories Staff costs Depreciation of investment properties Depreciation of property, plant and equipment Depreciation of right-of-use assets Lease expenses Other expenses Pre-operating expenses Other gains and losses Interest on lease liabilities 9,961,893 583,928 22,411 10,767 (7,082,877) (1,061,224) (83,913) (204,694) (724,225) (91,275) (1,040,881) (2,823) (14,581) (292,755) 10.316 (6,656,159) (1,077,474) (85,247) (209,769) 21 18 19 (749,094) 9 10 11 (84,831) (1,063,992) 12,694) (12,719) (303,414) Loss before tax Income tax expense (20,249) (9,987) (167,956) (21,032) 12 Loss for the year 13 (30,236) (188,987)

CONSOLIDATED STATEMENT OF FINANCIAL POSITION AT 31 DECEMBER 2020 2020 HK$'000 2019 HK$'000 NOTES Non-current Assets Property, plant and equipment Right-of-use assets Investment properties Goodwill Equity instruments at FVTOCI Pledged bank deposits Deferred tax assets Rental and related deposits paid 18 19 21 22 23 24 25 26 645,756 3,762,037 479,890 62,838 19,848 22,417 44,819 201,724 679,741 3,902,352 488,352 94,838 23,598 21,305 46,944 184,349 5,239,329 5,441,479 Current Assets Inventories Trade receivables Other receivables, prepayments and deposits Amounts due from fellow subsidiaries Tax recoverable Time deposits Pledged bank deposits Bank balances and cash 27 26 26 28 889,997 37,809 102,112 62,690 935,949 35,316 83,346 63,995 8,532 327,567 10,751 1.470,515 29 24 30 463,740 10,230 1,537,837 3,104,415 2,935,971 Current Liabilities Trade payables Other payables, accrued charges and other liabilities Lease liabilities Contract liabilities Dividend payable Amount due to ultimate holding company Amounts due to fellow subsidiaries Tax liabilities 31 31 32 31 1,231,199 753,530 711,073 441,548 295 26,998 28,933 5,150 1,250,087 729,068 762, 137 409,426 354 28,665 100,979 16,859 33 33 3,198,726 3,297,575 Net Current Liabilities (94,311) (361,604) Total Assets Less Current Liabilities 5,145,018 5,079,875

CONSOLIDATED STATEMENT OF FINANCIAL POSITION AT 31 DECEMBER 2020 2020 HK$'000 2019 HK$'000 NOTES Capital and Reserves Share capital Reserves 34 115,158 587,498 115,158 658,374 Equity attributable to owners of the Company Non-controlling interest 702,656 146,976 773,532 132,752 Total Equity 849,632 906,284 Non-current Liabilities Rental deposits received and other liabilities Lease liabilities Deferred tax liabilities 31 32 25 135,579 4,159,573 234 133,916 4,038,563 1,112 4,295,386 4,173,591 5,145,018 5,079,875

Lifestyle International Holdings Limited: Consolidated Statement of Profit or Loss and Other Comprehensive Income 綜合損益及其他全面收益表 for he ended 31 Decembe 20 截至二零二零年十二月三十一日止年度 Note 別註 4 2020 二零二零年 | HK$7000 千港元 1,993,024 (519,387) 1,473,637 218,878 (578,107) (114,634) 2019 二零一九年 HKSTOOO 千港元 3,542,032 (888,869) 2,653,163 147,165 (697,344) (137,787 收入 銷售成本 毛利 其他收入,收益及报 銷售及分銷成本 行政開支 利息收入及投資 收益(損) 投資物業公平值 6 Revenue Cost of sales Gross profit Other income, gains and losses Selling and distribution costs Administrative expenses Interest income and investment gains/(losses) Fair value changes on investment properties Finance costs Profit before taxation Taxation Profit for the year 7 34,559 740,176 14 8 融資成本 除稅前溢利 税项 本年度溢利 10 9 (418,056) (369,314) 246,963 (108,453) 138,510 (173,959) (365,238) 2,166, 176 (275,500) 1,890,676

Consolidated Statement of Financial Position 綜合財務狀況表 正 31 Decembe 2000 於二零二零年十二月三十一日 31 December 2020 二零二零年 十二月三十一日 HK$7000 千港元 31 December 2019 二零一九年 十二月三十一日 HKSMO 千港元 Note 附註 14 15 8,068,559 6,541,161 5,420,000 6,291,532 Non-current assets - Investment properties Property, plant and equipment Financial assets at fair value through other comprehensive income Financial assets at fair value through profit or loss Deposits Deferred tax assets 非流動資產 投資物業 物業面房及設備 按公平估計入其他全面收益 之金融資產 按公平值計入損益之金融 資產 按金 遞延稅資產 18 1,320,281 633,121 19 15,871 72,248 25 16,538 82,839 87,451 16,116,829 12,432,772 16 17 25,795 644,878 38,615 102,811 Current assets Inventories Trade and other receivables Financial assets at fair value through profit or loss Bank deposits Cash and cash equivalents 流動資產 存貨 重收款及其他應收款項 按公平值計入損益之金融 資產 銀行定期存款 現金及現金等传物 4,814,485 19 20 20 4,175,789 9,660,947 3,306,082 1,508,698 7,112,561 12,068,767 Current liabilities Trade and other payables Contract liabilities Lease liabilities Tax payable Bank borrowings - due within one year Financial liabilities at fair value through profit or loss 流動負債 奥付款及其他應付款項 合的負債 租賃負債 愿缴税 銀行借貸一一年內到期 21 22 15 662,249 121,824 86,574 105,162 826,275 138,294 76,144 490,926 23 9,628,937 4,070,966 按公平值計入損益之金融 負債 19 220,836 10,825,582 12 5,602,617 Non-current liabilities Bank borrowings - due after one year Bonds - due after one year Lease liabilities Deferred tax liabilities 非流動負債 銀行借貸一一年後到期 借券-一年後到期 租負值 業延稅項負債 23 24 15 25 3,874, 125 6,836,181 136,697 260,067 11,107,070 7,641,212 6,962,233 210,876 243.297 15,057,618 3,841,304 3,845,124 Consolidated Statement of Financial Position (continued) SAUR 31 Decembs 2000 於二零二零年十二月三十一日 31 December 2020 二零二零年 十二月三十一日 HKS'000 千港元 31 December 2019 二零一九年 十二月三十一日 HKSTOOO 千港元 Note 附註 26 Capital and reserves Share capital Reserves Equity attributable to owners of the Company 資本及销售 股本 儲備 本公司擁有人 應佔權益 7,510 3,837,614 7,510 3,833,794 3,845,124 3,841,304