Below are extracts of the financial statements from Goldi Ltd. Assume that all purchases are on...

 

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Below are extracts of the financial statements from Goldi Ltd. Assume that all purchases are on credit. Goldi Ltd wants financial analysis using selected ratios, to determine the efficiency of its business. Extract from the statement of comprehensive income 31 December 2021: Sales Cost of sales Gross Profit Operating and admin expenses Profit from operation Interest Tax Net profit R30 000 000 R12 000 000 R18 000 000 R2 000 000 R16 000 000 R3 000 000 R4 000 000 R9 000 000 Extract from the statement of financial position 31 December 2021: ASSETS Property, plant and equipment Current assets Inventory Trade receivables Cash and equivalents Prepayments Total assets EQUIVALENT AND LIABILITIES Capital and reserves Issued capital Accumulated profits Total liabilities Interest bearing borrowing Current liabilities Trade payables Short term borrowings Current portion of non-current liabilities Total equity and liabilities (R 8 000 000 32 000 000 8 000 000 6 000 000 7 000 000 11 000 000 40 000 000 13 000 000 8 000 000 5 000 000 27 000 00 3 000 000 24 000 000 8 000 000 6 000 000 10 000 000 40 000 000 28 Question 5.1 Calculate Goldi's debt ratio for 2021. Question 5.2 (2) Calculate Goldi's current ratio and comment on this from the perspective of a supplier that sells on credit. Question 5.3 Calculate Goldi's time interest earned ratio for 2021. TIE ratio = Profit from operations / interest Question 5.4 Calculate Goldi's quick ratio (acid test) for 2021. Question 5.5 Calculate Goldi's ROABIT for 2021. (2) (2) (3) (2) Below are extracts of the financial statements from Goldi Ltd. Assume that all purchases are on credit. Goldi Ltd wants financial analysis using selected ratios, to determine the efficiency of its business. Extract from the statement of comprehensive income 31 December 2021: Sales Cost of sales Gross Profit Operating and admin expenses Profit from operation Interest Tax Net profit R30 000 000 R12 000 000 R18 000 000 R2 000 000 R16 000 000 R3 000 000 R4 000 000 R9 000 000 Extract from the statement of financial position 31 December 2021: ASSETS Property, plant and equipment Current assets Inventory Trade receivables Cash and equivalents Prepayments Total assets EQUIVALENT AND LIABILITIES Capital and reserves Issued capital Accumulated profits Total liabilities Interest bearing borrowing Current liabilities Trade payables Short term borrowings Current portion of non-current liabilities Total equity and liabilities (R 8 000 000 32 000 000 8 000 000 6 000 000 7 000 000 11 000 000 40 000 000 13 000 000 8 000 000 5 000 000 27 000 00 3 000 000 24 000 000 8 000 000 6 000 000 10 000 000 40 000 000 28 Question 5.1 Calculate Goldi's debt ratio for 2021. Question 5.2 (2) Calculate Goldi's current ratio and comment on this from the perspective of a supplier that sells on credit. Question 5.3 Calculate Goldi's time interest earned ratio for 2021. TIE ratio = Profit from operations / interest Question 5.4 Calculate Goldi's quick ratio (acid test) for 2021. Question 5.5 Calculate Goldi's ROABIT for 2021. (2) (2) (3) (2)

Answer rating: 100% (QA)

51 Debt ratio Total liabilities Total assets 27 000 000 40 000 000 0675 675 ... View the full answer