The following are extracts of the Income Statement and Balance Sheet of Universal Ltd. Non-current Asset...

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The following are extracts of the Income Statement and Balance Sheet of Universal Ltd. Non-current Asset Vehicle Furniture Current Assets Inventory Receivable Balance at Bank Cash In hand Total current asset Current Liabilities Shareholders' equity Retained Profit General reserve Sales Cost of Sales Net Profit Investors Ratios: Dividend Per Share Number of Shares Issued Average share price Ratios Gross Profit Margin Net Profit Margin Receivable Collection Period Earning Per Share Dividend Yield PE ratio a. i. Gross Profit Margin ii. Net Profit Margin iii. Current Ratio iv. Quick Ratio 2021 (£000) V. Receivables Collection Period vi. Earnings Per Share 20.00 8.00 28.00 vii. Price Earning Ratio viii. Dividend Yield 4.90 8.80 13.90 2.60 30.20 16.70 41.50 20.00 16.00 5.50 41.50 30.00 8.00 16.00 12 Pence 20,000 units £2.50 The following ratios indicate the benchmark performance of the industry average for the year 2021: 2022 (£000) Measures 50 percent 45 percent 30 days 50 pence 3.2 percent 6.5 times 18.00 5.00 23.00 13.70 11.60 11.50 4.20 41.00 30.80 33.20 20.00 12.50 0.70 33.20 40.00 9.00 18.50 You are required to calculate and show your workings on the following ratios for both years: 18 Pence 20,000 units £3.30 (3 Marks) (3 Marks) (3 Marks) (3 Marks) (3 Marks) (3 Marks) (3 Marks) (3 Marks) (Total: 24 Marks) The following ratios indicate the benchmark performance of the industry average for the year 2021: Ratios Gross Profit Margin Net Profit Margin Receivable Collection Period Earning Per Share Dividend Yield PE ratio a. You are required to calculate and show your workings on the following ratios for both years: i. ii. iii. iv. V. vi. Gross Profit Margin Net Profit Margin i. ii. iii. iv. V. Current Ratio Quick Ratio vii. viii. Dividend Yield Receivables Collection Period Earnings Per Share Price Earning Ratio b. Your management requires you to explain the following category. You are required to calculate the ratio and critically comment on it. Suggest improvements to the ratios for the organisation where possible. Profitability ratio Efficiency ratio i. ii. iii. Liquidity ratio Investor's Ratio The weakness of Ratio PART 2 (20%) Measures 50 percent 45 percent 30 days 50 pence 3.2 percent 6.5 times Year 0 1 2 3 4 5 The net operational cash flows of investment schemes of Cafe and a Disco as follows: Cafe (£000) Disco (£000) (82) (82) 20 30 30 40 40 50 (3 Marks) (3 Marks) (Total: 24 Marks) You are required to calculate, for both schemes, the: Accounting Rate of Return Payback period Weakness of the above investment appraisal method (3 Marks) (3 Marks) (3 Marks) (3 Marks) (3 Marks) (3 Marks) (Total: 26 Marks) 30 40 50 30 Given that the residual value for Cafe and Disci are £18,000 and £ 22,000 respectively while the required rate of return is 12%. (5 Marks) (5 Marks) (10 Marks) (Total: 20 Marks) The following are extracts of the Income Statement and Balance Sheet of Universal Ltd. Non-current Asset Vehicle Furniture Current Assets Inventory Receivable Balance at Bank Cash In hand Total current asset Current Liabilities Shareholders' equity Retained Profit General reserve Sales Cost of Sales Net Profit Investors Ratios: Dividend Per Share Number of Shares Issued Average share price Ratios Gross Profit Margin Net Profit Margin Receivable Collection Period Earning Per Share Dividend Yield PE ratio a. i. Gross Profit Margin ii. Net Profit Margin iii. Current Ratio iv. Quick Ratio 2021 (£000) V. Receivables Collection Period vi. Earnings Per Share 20.00 8.00 28.00 vii. Price Earning Ratio viii. Dividend Yield 4.90 8.80 13.90 2.60 30.20 16.70 41.50 20.00 16.00 5.50 41.50 30.00 8.00 16.00 12 Pence 20,000 units £2.50 The following ratios indicate the benchmark performance of the industry average for the year 2021: 2022 (£000) Measures 50 percent 45 percent 30 days 50 pence 3.2 percent 6.5 times 18.00 5.00 23.00 13.70 11.60 11.50 4.20 41.00 30.80 33.20 20.00 12.50 0.70 33.20 40.00 9.00 18.50 You are required to calculate and show your workings on the following ratios for both years: 18 Pence 20,000 units £3.30 (3 Marks) (3 Marks) (3 Marks) (3 Marks) (3 Marks) (3 Marks) (3 Marks) (3 Marks) (Total: 24 Marks) The following ratios indicate the benchmark performance of the industry average for the year 2021: Ratios Gross Profit Margin Net Profit Margin Receivable Collection Period Earning Per Share Dividend Yield PE ratio a. You are required to calculate and show your workings on the following ratios for both years: i. ii. iii. iv. V. vi. Gross Profit Margin Net Profit Margin i. ii. iii. iv. V. Current Ratio Quick Ratio vii. viii. Dividend Yield Receivables Collection Period Earnings Per Share Price Earning Ratio b. Your management requires you to explain the following category. You are required to calculate the ratio and critically comment on it. Suggest improvements to the ratios for the organisation where possible. Profitability ratio Efficiency ratio i. ii. iii. Liquidity ratio Investor's Ratio The weakness of Ratio PART 2 (20%) Measures 50 percent 45 percent 30 days 50 pence 3.2 percent 6.5 times Year 0 1 2 3 4 5 The net operational cash flows of investment schemes of Cafe and a Disco as follows: Cafe (£000) Disco (£000) (82) (82) 20 30 30 40 40 50 (3 Marks) (3 Marks) (Total: 24 Marks) You are required to calculate, for both schemes, the: Accounting Rate of Return Payback period Weakness of the above investment appraisal method (3 Marks) (3 Marks) (3 Marks) (3 Marks) (3 Marks) (3 Marks) (Total: 26 Marks) 30 40 50 30 Given that the residual value for Cafe and Disci are £18,000 and £ 22,000 respectively while the required rate of return is 12%. (5 Marks) (5 Marks) (10 Marks) (Total: 20 Marks)

Answer rating: 100% (QA)

Sure Lets calculate the requested ratios and perform the investment appraisal calculations PART 1 Ratios 1 Gross Profit Margin Gross Profit Margin Sales Cost of Sales Sales For 2021 Gross Profit Margi... View the full answer