ASSIGNMENT ONE

Both Noman plc and Ibex Hill plc operate wholesale electrical stores throughout the

Zambia. The financial statements of each business for the year ended $30$ June $2011$ are

as follows:

Statements of financial position as at $30$ June $2011$

Profit for the year

All purchases and sales were on credit. Noman plc had announced its intention to pay a

dividend of K$135$ million and Ibex Hill plc K$95$ million in respect of the year. The market

values of a share in Noman plc and Ibex Hill plc at the end of the year were K$6\mathrm{.}50$ and

K$8\mathrm{.}20$ respectively.

Required:

For each business, calculate the key ratios that are concerned with each of the following

aspects:

profitability

efficiency

liquidity

gearing

Investment

What can you conclude from the ratios that you have calculated?