a) Rearrange the figures in Income Statement and Balance Sheet in a form suitable for analysis. b)
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Question:
a) Rearrange the figures in Income Statement and Balance Sheet in a form suitable for analysis.
b) Comment upon the present state and trend in respect of profitability, liquidity activity of the company. Consider two significant ratios under each heading.
The following figures are relating to the accounts of Alpha Ltd.
2010 | 2011 | |
Sales (credit) | 1 200 000 | 1 500 000 |
Net Block | 500 000 | 800 000 |
Receivables | 200 000 | 295 000 |
Payable | 100 000 | 200 000 |
Cash at Bank | 50 000 | 20 000 |
Closing stock | 200 000 | 400 000 |
Bank overdraft | 100 000 | 250 000 |
Purchases | 900 000 | 1 200 000 |
Expenses | 100 000 | 150 000 |
Depreciation | 75 000 | 120 000 |
Interest on overdraft | 15 000 | 40 000 |
Loan | - | 200 000 |
Interest on loan | - | 35 000 |
Share capital | 400 000 | 400 000 |
Reserve and Surplus | 190 000 | 207 500 |
Provision for income tax | 120 000 | 197 500 |
Proposed dividends | 40 000 | 60 000 |
Opening stock | 180 000 | - |
Related Book For
Financial Reporting Financial Statement Analysis and Valuation a strategic perspective
ISBN: 978-1285190907
8th edition
Authors: James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
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