Unicorn Furniture LLC is a retailer of high-end furniture to corporate clients. The company has recently...
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Unicorn Furniture LLC is a retailer of high-end furniture to corporate clients. The company has recently been suffering from rising costs, that it has been unable to pass on to its customers. In response to the number of people shopping via the Internet, Unicom Furniture LLC has implemented a cost cutting strategy in the prior year, and in the current year asked shareholders for funds to help reduce its debt burden. The following financial information for the current year is available: Statement of profit and loss for the year ended 31 Dec 2021 Sales Cost of sales Gross profit Administration costs Profit before interest and tax Interest Profit before tax Taxation at 30% Profit after tax Dividends Retained earnings $'000 70,000 50,000 20,000 Ordinary shares, par value 25c (MV/share= 2$) Retained profit 12,000 8,000 2,300 5,700 1,710 3,990 2,394 1,596 Statement of Financial Position (Balance sheet) extract $'000 Net non-current assets Net current assets 12% loan notes 2014 20,100 4,960 2,500 2,500 20,060 Required: Calculate and explain EPS, Dividend Cover, Interest cover, Price Earnings Ratio, Asset turnover Ratio for the years ending 31 Dec 2021 for Unicorn Furniture LLC ? Unicorn Furniture LLC is a retailer of high-end furniture to corporate clients. The company has recently been suffering from rising costs, that it has been unable to pass on to its customers. In response to the number of people shopping via the Internet, Unicom Furniture LLC has implemented a cost cutting strategy in the prior year, and in the current year asked shareholders for funds to help reduce its debt burden. The following financial information for the current year is available: Statement of profit and loss for the year ended 31 Dec 2021 Sales Cost of sales Gross profit Administration costs Profit before interest and tax Interest Profit before tax Taxation at 30% Profit after tax Dividends Retained earnings $'000 70,000 50,000 20,000 Ordinary shares, par value 25c (MV/share= 2$) Retained profit 12,000 8,000 2,300 5,700 1,710 3,990 2,394 1,596 Statement of Financial Position (Balance sheet) extract $'000 Net non-current assets Net current assets 12% loan notes 2014 20,100 4,960 2,500 2,500 20,060 Required: Calculate and explain EPS, Dividend Cover, Interest cover, Price Earnings Ratio, Asset turnover Ratio for the years ending 31 Dec 2021 for Unicorn Furniture LLC ?
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Here are the calculations for the key ratios for Unicorn Furniture LLC for the year ended 31 Dec 202... View the full answer
Related Book For
Global Marketing management
ISBN: 978-0470505748
5th edition
Authors: Masaaki Kotabe, Kristiaan Helsen
Posted Date:
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