The following financial statements relate to Charity plc:
Income statement (profit and loss account)
for year ended 30 September Year 4
........................................................................................... £000s
Revenue ................................................................................. 2,480
Cost of sales .......................................................................... (1,100)
Gross profit ............................................................................. 1,380
Administration and selling expenses ................................................ (678)
Operating profit .......................................................................... 702
Debenture interest ........................................................................ (31)
Profit before taxation .................................................................... 671
Taxation ................................................................................. (154)
Profit for equity holders .................................................................. 517
The directors have recommended a dividend of 11.4 pence per share in total in respect of Year 4, to be paid following approval at the next annual general meeting.
Statement of financial position (balance sheet)
as at 30 September Year 4
............................................................................................ £000s
Non-current assets, net of depreciation ................................................ 785
Current assets:
Inventories (stocks) ........................................................................ 341
Trade receivables (debtors) ............................................................... 801
Cash ......................................................................................... 110
Total current assets ...................................................................... 1,252
Total assets ............................................................................... 2,037
Current liabilities
Trade payables (creditors) ................................................................ (90)
Other payable and accruals ............................................................. (654)
Total current liabilities .................................................................. (744)
Net current assets .......................................................................... 508
Non-current liabilities
7% debentures ......................................................................... (440)
Total liabilities ...................................................................... (1,184)
Net assets ................................................................................. 853
Share capital and reserves
Issued share capital
(1,360,000 ordinary shares of 25p nominal value) .................................. 340
Retained earnings ...................................................................... 513
Required
Calculate ratios which measure:
Liquidity and the use of working capital;