The following are the summarised accounts for B Limited, a company with an accounting year ending on 30 September.

Required:
(a) calculate, for each year, two ratios for each of the following user groups, which are of particular significance to them: (i) shareholders; (ii) trade accounts payable; (iii) internal management;
(b) make brief comments upon the changes, between the two years, in the ratios calculated in (a) above.

Transcribed Image Text:

Summarised Statements of Financial Position for Tangible non-current assets at cost Less Depreciation Current assets: Inventory Accounts receivable Cash at bank Total assets Current liabilities Trade accounts payable Taxation Long-term liabilities 10% loan notes 2016/2019 Total liabilities Net assets Equity Called-up share capital of £0.25 per share Retained profits Shareholders' funds 2015/16 £000 40,145 40,210 12,092 34,389 2,473 36,862 19,840 £000 4,995 92,447 97,442 (56,702) 40,740 9,920 30,820 40,740 2016/17 £000 50,455 43,370 5,790 39,215 3,260 42,475 19,840 £000 12,700 99,615 112,315 (62,315) 50,000 9,920 40,080 50,000