Must Have Furnisher's current financial information (charts) can be found in Annex A of this report. All other charts and reports related to the projects to be examined and the company in question for the merger can also be found in Annex A.
This report begins by comparing the profit/loss statement for the year ending 30/09/03. What follows is a bar graph that compares 2002 profit/loss and 2003 profit/loss. You may find the results quite startling. With sales and gross profit being higher in 2003 one would expect the operating profit to higher, but its not:
The blue bars represent 2002's data and the reddish bars represent 2003's data. Sales were way up in 2003 as were cost of sales and gross profit. There is a considerable gap between 2002 and 2003 in sales and expenses. When you get down to the number that really counts, the operating profit, 2002 was a better year. 2003's data shows a 311% increase in sales, 466% more spent in cost of sales, etcBut, when you look at the final bars (operating profit) 2002 reported 674000 profit and 2003 reported 620000 profit. The company actually made less in 2003 (-54000) and spent considerably more in 2003. What hurt in 2003's numbers were the expenses such as bad debts, depreciation, selling expenses, and interest owed.
It appears that the new p ...Show more