Question: Question No: 1 (25 marks) a. Calculate the required ratios for 2019 and 2020 using the given details. Use the blank table provided below

Question No: 1 (25 marks) a. Calculate the required ratios for 2019 and 2020 using the given details. Use the blank table provided below for your answer. I. Current ratio II. Quick ratio III. Inventory turnover IV. Debt to Equity V. Times interest b. Write a short interpretation of the performance of the company based on the ratios calculated. Use the same blank table provided below for your answer. c. Prepare a common size analysis using the template provided. Income Statement 2019 $ "000" 2020 2019 2020 $"000" Balance Sheet $ "000" $"000" Sales 100 135 Non Current Assets COGS 40 55 PP&E 600 640 Gross Profit 60 80 Current Assets Operating Expenses 20 23 Inventory 40 42 Profit Before Interest & Tax 40 57 Receivables 30 25 Interest 10 10 Cash 10 15 Profit Before Tax 30 47 Total Current Ass 80 82 Taxation 9 10 Total Assets 680 722 Profit After Taxation 21 37 Non Current Liabilities Loans 200 200 Current Liabilities Payables 20 25 Total Liabilities 220 225 Equity Share Capital 150 150 Retained Earnings 310 347 Total Equity 460 497 Total Liabilities & 680 722 Ratio Current ratio Quick ratio Inventory turnover Debt to Equity Times interest Common Size Analysis Income Statement Sales COGS Gross Profit Operating Expenses Profit Before Interest & Tax 2019 2020 Interpretation 2019 2020 I

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

Boboli Co. wanted to promote its "California style" pizza, which it sold in supermarkets. The company contracted with Highland Group, Inc., to produce two million recipe brochures, which would be...

In a statutory rape situation, what crisis intervention and prosecution approaches be taken with the adult? (The scenario involves a 17-year-old male and a female in her thirties, who were both in a...

You have just started a new job and your employer offers a 401k match as part of the benefits package. Your employer will match 50% of all your 401k contributions up to 10% of your income. To take...

Hello Finstat. I have really appreciated your help so far. Can you help with the attached? From what I can tell and what the instructor has told us is that this is less involved than the previous...

ALL questions from this section (Total 100 marks) Question No: 1 (25 marks) a. Calculate the required ratios for 2019 and 2020 using the given details. Use the blank table provided below for your...

pls solved within 30mint Individual Assignment 1 (30% of the final marks) Based on the above information prepare an academic report that should answer the following questions: Answer the following...

Footscray Foods has expanded its operations over the past year. As their business consultant, you have been asked to advise on whether this decision was successful. Management has provided you with...

Triple D Corporation is all equity financed with total assets valued at $1 million, which are assumed constant. The corporation's ordinary shares are valued at $25 each, and the firm is in the 40...

Triple D Corporation is all equity financed with total assets valued at $1 millon, which are assumed constant. The corporation's ordinary shares are valued at $25 each, and the firm Is In the 40...

UNIVERSITY OF NAMIBIA NAMIBIA BUSINESS SCHOOL FINANCIAL MANAGEMENT STRATEGY Semester 2 2020 Triple D Corporation is all equity financed with total assets valued at $1 million, which are assumed...

Triple D Corporation is all equity financed with total assets valued at $1 million, which are assumed constant. The corporations ordinary shares are valued at $25 each, and the firm is in the 40...

Physicians Mutual Insurance Co. issued a policy covering Browns life. The policy declared that it did not cover any deaths resulting from mental disorder, alcoholism, or drug addiction. Brown was...

Ajax Corporation, which uses a periodic inventory system, recorded the following inventory transactions during the month November of 2020. Units Unit cost/Unit price 1-Nov Beginning inventory 112 $72...

Perps older than 6 0 years old are able to steal more in a 2 0 2 4 ACFE fraud survey. True False

Greenwood Company sold $4,000,000 of 7% first-mortgage bonds on October 1, 2005, at $3,479,683 plus accrued interest. The bonds were dated July 1, 2005; interest payable semiannually on January 1 and...

Determine the total first-year cost of car ownership for Milagros. She just purchased a vehicle valued for $15,000 with the following costs: Auto Loan: Amount$15,000, Duration4 years, APR6.65 percent...

Deer Creek Inc. bottles and distributes spring water. On April 27 of the current year, Deer Creek reacquired 15,000 shares of its common stock at $60 per share. On July 13, Deer Creek sold 9,000 of...

The following information is available from the balance sheets at the ends of the two most recent years and the income statement for the most recent year of Impact Company: 2012 Sales...

In each of the following independent cases, state whether the bonds were issued at par, a premium, or a discount. Explain your answers. (a) Pop-up Manufacturing sold 1,500 of its $1,000, 8%...

Determine if the overhead allocated to the product relates to a single plantwide overhead rate method, multiple production department factory overhead rate method, or activity-based costing...

=+72. Windy. Alternative sources of energy are of increasing interest throughout the energy industry. Wind energy has great potential. But appropriate sites must be found for the turbines. To select...

=+At first, the insurance agent wondered whether there was some kind of mistake in this output. He thought the Pythagorean Theorem of Statistics should work for finding the standard deviation of the...

=+His statistical software produced the following summaries (where PriceDiff = Local - Online): Variable Count Mean StdDev Local 10 799.200 229.281 Online 10 753.300 256.267 PriceDiff 10 45.900...