The financial statements of Bonny Terminals Ltd , a gas supply company for the year ended 3
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Question:
The financial statements of Bonny Terminals Ltd a gas supply company for the year
ended December and are below.
Statements of financial position
m m
Assets
Noncurrent assets
Property, plant, and equipment
Current assets
Inventories
Trade receivables
Cash
Total assets
Liabilities and equity
Current liabilities
Trade payables
Taxation
Interest payable
Noncurrent liabilities
Longterm loan @
Total liabilities
Equity
Share capital
Retained earnings
Total liabilities and equity
Income statement of Bonny Terminals Ltd for the year ended December
m m
Revenue
Cost of sales
Gross profit
Distribution costs
Administrative expenses
Operating profit
Finance costs
Profit before tax
Corporate tax
Profit for the year
Additional information:
The company paid dividends of million in and million in
respectively.
Required:
a Calculate the following ratios for and
Acid test Quick ratio
Operating profit margin
Return on capital employed
Gearing
Interest cover
Asset turnover
Inventory turnover
Trade receivables days
Trade payables days
Dividend cover
b Comment on the performance of the business based on
the above ratios marks
c Discuss the limitations of using ratio as a tool of analysing
performance of a business marks
TOTAL: MARKSThe financial statements of Bonny Terminals Ltd a gas supply company for the year
ended December and are below.
Statements of financial position
m m
Assets
Noncurrent assets
Property, plant, and equipment
Current assets
Inventories
Trade receivables
Cash
Total assets
Liabilities and equity
Current liabilities
Trade payables
Taxation
Interest payable
Noncurrent liabilities
Longterm loan @
Total liabilities
Equity
Share capital
Retained earnings
Total liabilities and equity
Income statement of Bonny Terminals Ltd for the year ended December
m m
Revenue
Cost of sales
Gross profit
Distribution costs
Administrative expenses
Operating profit
Finance costs
Profit before tax
Corporate tax
Profit for the year
Additional information:
The company paid dividends of million in and million in
respectively.
Required:
a Calculate the following ratios for and
Acid test Quick ratio
Operating profit margin
Return on capital employed
Gearing
Interest cover
Asset turnover
Inventory turnover
Trade receivables days
Trade payables days
Dividend cover
b Comment on the performance of the business based on
the above ratios marks
c Discuss the limitations of using ratio as a tool of analysing
performance of a business marks
TOTAL: MARKS
Related Book For
Financial Accounting and Reporting
ISBN: 978-0273744443
14th Edition
Authors: Barry Elliott, Jamie Elliott
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