Financial Report of the Holyrood Golf Club

Table 1 Financial Ratios

Financial Ratios 1996 1995 1994 1993

current ratio 0 .77 1 .45 2 .84 2 .35

quick ratio 0 .62 1 .22 2 .56 1 .94

inventory turnover 40 .46 33 .84 32 .87 37 .31

receivable turnover 14 .13 224 .47 31 .73 140 .95

asset turnover 0 .31 0 .31 0 .36 0 .41

debt to asset 0 .05 0 .04 0 .04 0 .03

profit margin -0 .24 -0 .10 -0 .07 0 .13

ROA -0 .07 -0 .03 -0 .02 0 .05 p

ROE -0 .08 -0 .03 -0 .02 0 .05 III Cash Flow Analysis and Recommendation

III .1 Cash Flow Analysis

According to the cash flow analysis , the company is overburdened with large amount of fixed assets at their possession . The assets bring significant maintenance and depreciation costs . While the financial condition was not displaying encouraging prospects to debtors , the company would have no support from short and long-term debtors , thus the large amount of fixed asset will continue to take away their profit and credibility . In that direction , the company will have no chance to gather enough capital to design programs that will enhance sales performance . Below is the summary of cash flow analysis of Holyrood Golf

Table 2 Cash Flow

Cash Flow 1996 1995 1994

Net Income -45008 -19305 -15905

Addition Depreciation 25789 35897 37251

Additional acc . Pay . 7510 -109 6235

33299 35788 43486

Minus Additional acc . Rec . 5481 -6565 12264

Additional inventory -270 -1274 -1331 (5211 (-7839 (10933

Cash flow from operation -16920 24322 16648

Cash flow from long term investment Procurement of fixed asset (-37692 (16046 (-38459

net cash flow 20772 8276 55107 II .2 Recommendation

From the case of Holyrood Golf , we believe that owning the entire courses and buildings is necessary to keep members safe...