Use the information from the 2019 annual report for Kathmandu Holdings Ltd ,hereafter referred to as Kathmandu, to complete questions 1 and 2. The 2019 annual report for Kathmandu Holdings Ltd can be accessed from their website. Download the pdf https://www.kathmanduholdings.com/investor-relations/reports/. The Consolidated Financial Statements and Notes to the Consolidated Financial Statements are on page 31 – 73. The current share price for Kathmandu can be found from the www.nzx.com website..
a) Calculate the market capitalisation for Kathmandu based on the current share price and number of shares that have been issued as at 31 July 2019. Find the current share price for Kathmandu using the information above. Find the number of shares that have been issued from the annual report.
b) Compare the market capitalisation calculated in (a) above with the value of equity as recorded in the balance sheet as at 31 July 2019.
c) Provide two reasons why the book value of equity is different from the market capitalisation.
- Assets, Liabilities and Equity of Kathmandu Holdings Ltd
a) Read Note 1.1 of the Notes to the Consolidated Financial Statements of Kathmandu on page 38 of the annual report. Use this information and other information from Kathmandu’s company website to describe the business of Kathmandu in your own words.
b) You have been asked by one of your friends to explain some of the items included in the Consolidated Balance Sheet (page 35) for Kathmandu as at 31 July 2019. You are required to describe what each item represents and provide reasons for its classification as either current or non-current asset/liability or equity using only the information provided in the financial statements. Also, give details of where the information on each item is located within the consolidated financial statements of Kathmandu. That is, your answers should relate specifically to Kathmandu Holdings Ltd., and not a general description of each item. i. Inventory ii. Trade and other receivables iii. Property, plant and equipment iv. Share capital