The following information has been extracted from the financial statements of Dandy & Grandee Superstores Ltd....

 

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The following information has been extracted from the financial statements of Dandy & Grandee Superstores Ltd. Extracts from the Income Statements for year ended 30 April ..... 2019 2018 000.S 11,200 000.$ 9,750 Sales Cost of sales 8,460 6,825 Net profit before tax This is after charging: Depreciation Loạn note interest 465 320 360 80 280 60 Interest on bank overdraft 15 9 Audit fees 12 10 Statement of financial position as at 30 April... 2018 $'000 2019 S'000 $'000 S'000 Assets Non -current assets 1850 1430 Current assets Inventory 640 490 Receivables 1230 1080 Cash 1690 3120 80 1950 3800 120 TOTAL ASSETS EQUITY & LIABILITIES Equity Ordinary share capital Retained earnings 800 800 1310 2110 930 1730 Non-current liabilities 10% loan stock 800 600 Current liabilities Bank overdraft 110 80 Payables Тахation 750 30 690 890 20 790 3120 3800 The following figures have been extracted from the records of D & G Superstores Ltd for the previous year as well as the relative industry averages: D&G Industry Average 30 April 2018 30 April 2018 16.70% ROCE (capital employed = equity + debentures) Profit/sales 18.50% %3D 3.90% 4.73% Asset turnover 4.29 3.91 Current ratio 2.0 1.9 Quick ratio 1.42 1.27 2021/2022- Semester 1 Financial Accounting II Gross profit margin Accounts receivable collection period Accounts payable payment period Inventory turnover (times) Gearing 35.23% 30.00% 40 days 37 days 52 days 49 days 13.90 18.30 26.37% 32.71% WRITTEN ASSIGNMENT You are required to: A. With the use of FIVE (5) advantages and FIVE (5) disadvantages, discuss the use of ratios in analyzing financial performance. (10 marks) B. Calculate comparable ratios (to 2 decimal places) for Dandy & Grandee Superstores Ltd for the year ended 30 April 2019. Show all calculations. (18 marks) C. Write a report to the board of directors of Dandy & Grandee Superstores Ltd. analyzing the performance of the company when 2019 is compared with the previous year 2018 and against industry average. (27 marks) The following information has been extracted from the financial statements of Dandy & Grandee Superstores Ltd. Extracts from the Income Statements for year ended 30 April ..... 2019 2018 000.S 11,200 000.$ 9,750 Sales Cost of sales 8,460 6,825 Net profit before tax This is after charging: Depreciation Loạn note interest 465 320 360 80 280 60 Interest on bank overdraft 15 9 Audit fees 12 10 Statement of financial position as at 30 April... 2018 $'000 2019 S'000 $'000 S'000 Assets Non -current assets 1850 1430 Current assets Inventory 640 490 Receivables 1230 1080 Cash 1690 3120 80 1950 3800 120 TOTAL ASSETS EQUITY & LIABILITIES Equity Ordinary share capital Retained earnings 800 800 1310 2110 930 1730 Non-current liabilities 10% loan stock 800 600 Current liabilities Bank overdraft 110 80 Payables Тахation 750 30 690 890 20 790 3120 3800 The following figures have been extracted from the records of D & G Superstores Ltd for the previous year as well as the relative industry averages: D&G Industry Average 30 April 2018 30 April 2018 16.70% ROCE (capital employed = equity + debentures) Profit/sales 18.50% %3D 3.90% 4.73% Asset turnover 4.29 3.91 Current ratio 2.0 1.9 Quick ratio 1.42 1.27 2021/2022- Semester 1 Financial Accounting II Gross profit margin Accounts receivable collection period Accounts payable payment period Inventory turnover (times) Gearing 35.23% 30.00% 40 days 37 days 52 days 49 days 13.90 18.30 26.37% 32.71% WRITTEN ASSIGNMENT You are required to: A. With the use of FIVE (5) advantages and FIVE (5) disadvantages, discuss the use of ratios in analyzing financial performance. (10 marks) B. Calculate comparable ratios (to 2 decimal places) for Dandy & Grandee Superstores Ltd for the year ended 30 April 2019. Show all calculations. (18 marks) C. Write a report to the board of directors of Dandy & Grandee Superstores Ltd. analyzing the performance of the company when 2019 is compared with the previous year 2018 and against industry average. (27 marks)

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