Using the following statement of financial position and statement of profit or loss, calculate ten accounting ratios (each to 2 decimal places). Comment on each ratio calculated (ignore taxation).

The statement of changes in equity shows that retained profits at 1 April 2015 were £28,800; that £24,000 has been transferred from retained profit to the general reserve; and that a dividend of £14,400 was paid during the year.

Transcribed Image Text:

Non-current assets Equipment at cost Less Depreciation to date Current assets Inventory Accounts receivable Bank Total assets Current liabilities Statement of Financial Position as at 31 March 2016 (£000) Accounts payable Dividends payable Bank overdraft Non-current liabilities 5% Loan notes Net assets Equity Share capital - ordinary shares of 50p each Reserves General reserve Retained profits Revenue Less Cost of goods sold Opening inventory Add Purchases Less Closing inventory Gross profit Less Depreciation Other expenses Operating profit Loan-note interest Profit for the year 360 72 Statement of Profit or Loss for period ending 31 March 2016 (€000) '| 192 14 202 408 (120) 300 1,740 2,040 (360) 96 572 720 (240) 480 432 912 (528) 384 300 481 36 384 2,400 (1,680) 720 (668) 52 (6) 46