Figure 3.1 displays the financial statement of ABC Company. The manager aims to evaluate business performance,...

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Figure 3.1 displays the financial statement of ABC Company. The manager aims to evaluate business performance, and accountants are using ratio analysis techniques to analyze the correlation between two sets of figures derived from financial accounts. Utilizing an Excel sheet, they are estimating ratio analysis for business profitability, financial stability, and resource utilization. A B C D 1 The ABC Company - FINANCIAL ACCOUNTS E F G H J 2 3 Profit and Loss Account 4 For years ended 5 31 December 200X '000 '000 31 December 200Y '000 '000 6 Sales 7 Cash 150 180 8 Credit 330 480 420 600 9 Less: Cost of goods sold 10 opening inventory 200 195 11 purchases 60 80 12 260 275 13 Less: closing inventory 30 230 10 265 14 15 Gross profit 250 335 16 Less: Operating expenses 17 administrative expenses 75 70 18 financial expenses 18 20 19 selling and distribution expenses 55 148 60 150 20 21 Net profit before tax 102 185 22 Less: corporation tax 25 47 23 Net profit after tax (earnings) 77 138 24 25 26 27 -> Balance Sheet 28 As at 29 Fixed assets 31 December 200X '000 31 December 200Y '000 '000 '000 30 31 buildings and land equipment 60 90 110 170 85 175 32 33 Current assets 34 inventory 35 debtors 36 cash 37 Total assets 30 10 50 90 150 230 100 200 400 375 38 39 Current liabilities & owner's equity 40 creditors 80 55 41 dividends 30 42 42 overdraft 4 114 20 117 43 owner's equity 286 258 44 Total liabilities & owner's equity 400 375 45 Figure 3.1 Financial statements for the ABC Company. Figure 3.1 displays the financial statement of ABC Company. The manager aims to evaluate business performance, and accountants are using ratio analysis techniques to analyze the correlation between two sets of figures derived from financial accounts. Utilizing an Excel sheet, they are estimating ratio analysis for business profitability, financial stability, and resource utilization. A B C D 1 The ABC Company - FINANCIAL ACCOUNTS E F G H J 2 3 Profit and Loss Account 4 For years ended 5 31 December 200X '000 '000 31 December 200Y '000 '000 6 Sales 7 Cash 150 180 8 Credit 330 480 420 600 9 Less: Cost of goods sold 10 opening inventory 200 195 11 purchases 60 80 12 260 275 13 Less: closing inventory 30 230 10 265 14 15 Gross profit 250 335 16 Less: Operating expenses 17 administrative expenses 75 70 18 financial expenses 18 20 19 selling and distribution expenses 55 148 60 150 20 21 Net profit before tax 102 185 22 Less: corporation tax 25 47 23 Net profit after tax (earnings) 77 138 24 25 26 27 -> Balance Sheet 28 As at 29 Fixed assets 31 December 200X '000 31 December 200Y '000 '000 '000 30 31 buildings and land equipment 60 90 110 170 85 175 32 33 Current assets 34 inventory 35 debtors 36 cash 37 Total assets 30 10 50 90 150 230 100 200 400 375 38 39 Current liabilities & owner's equity 40 creditors 80 55 41 dividends 30 42 42 overdraft 4 114 20 117 43 owner's equity 286 258 44 Total liabilities & owner's equity 400 375 45 Figure 3.1 Financial statements for the ABC Company.