Question

The financial statements of Zetar plc are presented in Appendix C. The company’s complete annual report, including the notes to its financial statements, is available in the Investors section at www.zetarplc.com.

Instructions

Visit Zetar’s corporate website and answer the following questions from Zetar’s 2011 annual report.

(c) What is the approximate tax rate of Zetar’s “Tax on profit from continuing activities”?

Solution

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Requirement c

We are asked what is the approximate tax rate of Zetar’s “Tax on profit from continuing activities”.

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Related questions

accounting

Recently, it was announced that two giant French retailers, Carrefour SA and Promodes SA, would merge. A headline in the Wall Street Journal blared, “French Retailers Create New Wal-Mart Rival.” While Wal-Mart’s total sales would still exceed those of the combined company, Wal-Mart’s international sales are far less than those of the combined company. This is a serious concern for Wal-Mart, since its primary opportunity for future growth lies outside of the United States.

Below are basic financial data for the combined corporation (in euros) and Wal-Mart (in U.S. dollars). Even though their results are presented in different currencies, by employing ratios we can make some basic comparisons.

CarrefourWal-Mart (in millions)(in millions)Sales revenue70,486256,329Cost of goods sold54,630198,747Net income1,7389,054Total assets39,063104,912Current assets14,52134,421Current liabilities13,66037,418Total liabilities29,43461,289\begin{array}{lcc} &\textbf{Carrefour}&\textbf{Wal-Mart }\\ &\underline{\textbf{(in millions)}}&\underline{\textbf{(in millions)}}\\[5pt] \text{Sales revenue}&\text{\hspace{5pt}70,486}&\text{\hspace{5pt}256,329}\\ \text{Cost of goods sold}&\text{\hspace{5pt}54,630}&\text{\hspace{5pt}198,747}\\ \text{Net income}&\text{\hspace{10pt}1,738}&\text{\hspace{15pt}9,054}\\ \text{Total assets}&\text{\hspace{5pt}39,063}&\text{\hspace{5pt}104,912}\\ \text{Current assets}&\text{\hspace{5pt}14,521}&\text{\hspace{10pt}34,421}\\ \text{Current liabilities}&\text{\hspace{5pt}13,660}&\text{\hspace{10pt}37,418}\\ \text{Total liabilities}&\text{\hspace{5pt}29,434}&\text{\hspace{10pt}61,289}\\ \end{array}

Instructions

Compare the two companies by answering the following.

(c) Calculate the current ratio and debt to assets ratios for the two companies, and discuss their relative liquidity and solvency.

accounting

Recently, it was announced that two giant French retailers, Carrefour SA and Promodes SA, would merge. A headline in the Wall Street Journal blared, “French Retailers Create New Wal-Mart Rival.” While Wal-Mart’s total sales would still exceed those of the combined company, Wal-Mart’s international sales are far less than those of the combined company. This is a serious concern for Wal-Mart, since its primary opportunity for future growth lies outside of the United States.

Below are basic financial data for the combined corporation (in euros) and Wal-Mart (in U.S. dollars). Even though their results are presented in different currencies, by employing ratios we can make some basic comparisons.

CarrefourWal-Mart (in millions)(in millions)Sales revenue70,486256,329Cost of goods sold54,630198,747Net income1,7389,054Total assets39,063104,912Current assets14,52134,421Current liabilities13,66037,418Total liabilities29,43461,289\begin{array}{lcc} &\textbf{Carrefour}&\textbf{Wal-Mart }\\ &\underline{\textbf{(in millions)}}&\underline{\textbf{(in millions)}}\\[5pt] \text{Sales revenue}&\text{\hspace{5pt}70,486}&\text{\hspace{5pt}256,329}\\ \text{Cost of goods sold}&\text{\hspace{5pt}54,630}&\text{\hspace{5pt}198,747}\\ \text{Net income}&\text{\hspace{10pt}1,738}&\text{\hspace{15pt}9,054}\\ \text{Total assets}&\text{\hspace{5pt}39,063}&\text{\hspace{5pt}104,912}\\ \text{Current assets}&\text{\hspace{5pt}14,521}&\text{\hspace{10pt}34,421}\\ \text{Current liabilities}&\text{\hspace{5pt}13,660}&\text{\hspace{10pt}37,418}\\ \text{Total liabilities}&\text{\hspace{5pt}29,434}&\text{\hspace{10pt}61,289}\\ \end{array}

Instructions

Compare the two companies by answering the following.

(b) Calculate the profit margin, and discuss the companies’ relative profitability