FIN203: The income statement and balance sheet of Sheng Siong Group Ltd “Sheng Siong”, one of Singapore’s largest retailers with 67: Essentials of Financial Management Assignment, SUSS, Singapore

Question 1

The income statement and balance sheet of Sheng Siong Group Ltd “Sheng Siong”, one of Singapore’s largest retailers with 67 stores located across the island. over the last three years are provided below.

• Calculate Sheng Siong’s cash flow from assets for 2021 and 2022 and discuss your observations. Your answer should not exceed 200 words.
• Appraise Sheng Siong’s profitability and long-term solvency ratios over the last three years. Display the ratios you computed in the following table (i.e., input the related ratios, formula, and the values for each year). The presentation of your answer should be well-organized, and impactful and should not exceed 200 words.

Question 2

Stella Lam (“Stella”) recently joins the workforce, and her starting salary is $3,500 per month. The CPF contribution rate (both employer and employee) for her age group is 37%, and this is allocated as follows:

• Ordinary account = 60%
• Medisave account = 22%
• Special account = 18%

The interest rate paid by the CPF Board on member’s ordinary account is 2.5% per annum, compounded monthly.

As Stella intends to settle down with her fiancé, she needs to set aside $25,000 in her ordinary account to buy a 4-room HDB apartment.

Calculate how long Stella needs to work in order to afford the HDB apartment and examine how she can possibly accelerate this process. State the assumptions you have made.