The figures below are extracted from ASOS 2020 and 2021 annual reports. Income statement Sales revenue...
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The figures below are extracted from ASOS 2020 and 2021 annual reports. Income statement Sales revenue Cost of sales Gross profit Operating profit (use for PBIT) Interest paid Balance sheet Non-current assets Current assets Inventories Trade and other receivables Current assets less inventories Current liabilities Trade and other payables Non-current liabilities Total equity Capital employed 2021 £m 3,911 2,134 1,777 190 13 £m 1,325 1,560 807 58 753 998 956 1,034 1,034 2,068 2020 £m 3,264 1,716 1,548 151 10 £m 970 1,020 532 60 488 818 770 810 810 1,620 You are required: Write a brief report on the performance of ASOS over the financial periods 2020 to 2021. You should use the financial statements provided above to calculate the required accounting ratios shown below and use any other information relevant for your comments. Information can be accessed from the annual report and accounts and any other source of evidence that you believe helps to explain the company's performance and position. Calculate the following ratios. Show all your working out Long term financing ratio (2marks) 1.1 Gearing Working capital Ratios (6marks) 1.2 Inventory days 1.3 Receivable days 1.4 Payable days Liquidity Ratios (4marks) 1.5 Current ratio 1.6 Acid test Profitability Ratios (6marks) 1.7 Return on capital employed 1.8 Net profit margin 1.9 Asset turnover Interpretation (12marks) Interpret the ratios above by making comparative relevant comments with clear demonstration of understanding applied in context Correct answers with working out Interpretation of ratios (comparative comments) Marking criteria for section A: Explanatory comments on the assessment criteria Assessment criteria: (Guidelines-suggested-under FOUR MAIN HEADINGS) Calculations i Conclusion/ Recommendations and use i of appropriate referencing as required by London met Relevance, clear demonstration of understanding and applied in context Identifying the key points raised Maximum marks for each section Recommended marks (18 marks): 2marks each- Imark for 2020, I mark for 2021. Maximum of 10marks without working out (9 Marks): Imarks for each specific ratio (3marks) The figures below are extracted from ASOS 2020 and 2021 annual reports. Income statement Sales revenue Cost of sales Gross profit Operating profit (use for PBIT) Interest paid Balance sheet Non-current assets Current assets Inventories Trade and other receivables Current assets less inventories Current liabilities Trade and other payables Non-current liabilities Total equity Capital employed 2021 £m 3,911 2,134 1,777 190 13 £m 1,325 1,560 807 58 753 998 956 1,034 1,034 2,068 2020 £m 3,264 1,716 1,548 151 10 £m 970 1,020 532 60 488 818 770 810 810 1,620 You are required: Write a brief report on the performance of ASOS over the financial periods 2020 to 2021. You should use the financial statements provided above to calculate the required accounting ratios shown below and use any other information relevant for your comments. Information can be accessed from the annual report and accounts and any other source of evidence that you believe helps to explain the company's performance and position. Calculate the following ratios. Show all your working out Long term financing ratio (2marks) 1.1 Gearing Working capital Ratios (6marks) 1.2 Inventory days 1.3 Receivable days 1.4 Payable days Liquidity Ratios (4marks) 1.5 Current ratio 1.6 Acid test Profitability Ratios (6marks) 1.7 Return on capital employed 1.8 Net profit margin 1.9 Asset turnover Interpretation (12marks) Interpret the ratios above by making comparative relevant comments with clear demonstration of understanding applied in context Correct answers with working out Interpretation of ratios (comparative comments) Marking criteria for section A: Explanatory comments on the assessment criteria Assessment criteria: (Guidelines-suggested-under FOUR MAIN HEADINGS) Calculations i Conclusion/ Recommendations and use i of appropriate referencing as required by London met Relevance, clear demonstration of understanding and applied in context Identifying the key points raised Maximum marks for each section Recommended marks (18 marks): 2marks each- Imark for 2020, I mark for 2021. Maximum of 10marks without working out (9 Marks): Imarks for each specific ratio (3marks)
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Fundamental Managerial Accounting Concepts
ISBN: 978-1259569197
8th edition
Authors: Thomas Edmonds, Christopher Edmonds, Bor Yi Tsay, Philip Olds
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