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Question $24$

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The financial statement below represents the performance of Yovela & Co in $2023.$

Yovela and Co

Income statement for the year ended $31$ December $2023$

$

Sales revenue $187,000$

Cost of goods sold $(105,000)$

Gross profit $82,000$

Interest income $1,050$

Selling, General & Administrative Exp. $(49,300)$

Interest Expense $(1,950)$

Profit before tax $31,800$

Tax Exp. $(8,427)$

Profit after tax $23,373$

Statement of financial position as at $31$ December $2023$

ASSETS

$

$

Non$-$Current Assets

Delivery van

$44,500$

Current Assets

Inventories

$26,000$

Trade receivables

$21,600$

Cash at bank

$20,855$

Prepaid expenses $(325)$

$68,455$

Total Assets

$112,955$

EQUITY AND LIABILITIES

Current Liabilities

Trade payables

$18,000$

Tax payable

$2,350$

$20,350$

Non$-$Current Liabilities

Non$-$current debt

$35,650$

Total Liabilities

$56,000$

Equity

$56,955$

Total equity and liabilities

$112,955$

Required:

As an analyst, you are required to prepare a condensed financial statement as part of your process of evaluating the business of Yovela $ Co$.$

Useful formulas

Balance Sheet

Net Operating Working Capital $($NOWC$)=$ OCA $-$OCL

Net Long$-$Term Assets $=$ LT Assets $-$ LT Liabilities

Net Debt $=$ interest$-$bearing debt $-$ cash

Income Statement

Net Interest Expense After Tax $=($Interest Expense $-$ Interest Income$)$ x $(1-$tax$)$

NOPAT $=$ Net operating income $+$ net interest

Answer text Question $24$

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