Master in Business ManagementFinancial Management with Computer Application

Management 713

Assignment:1. What was the impact of the 2008 market recession on Everelite’s assets, liabilities and sales?

Based on the financial statements given, surprisingly, the impact of the recession was an increase on Everelite’s assets, liabilities and sales but a decrease on its revenue.

2. Everilite’s EBIT became smaller in 2008. By just using the income statements, can you provide the reasons?

Based on the Income Statement , the decrease of EBIT of Everelite’s was an increase on their expenses like the Cost of Goods Sold, the operating expense and the interest expense. Though there was also an increase on its sales but the increase on its expenses is almost double than the increase on its sales.

3. What caused Everelite’s total assets to increase in 2008? There was an increase on their cash and probably they have intensified their credit

system which resulted to decrease on their accounts receivable. There was also an increase on their inventories and Non-current Assets.

4. What financing resources did Everelite use to support its total assets’ expansion? The major financing resources that supported the total assets expansion of Everelite is

from long-term financing.5. Everelite’s current assets account form a large part of the firm’s total assets. Did Everelite

support its current assets mainly from short-term financing or long-term financing? From long-term financing

6. Everelite’s long-term debts are much more than equity. What is the impact of this condition on the company?

The stakeholder’s might perceived it negatively against the company’s stability or they might conclude that the company is losing.

Submitted by: Submitted to:

Mary Ann M. Alminaza Mr. Wilson V. Lozada, CPA,MBA