The final accounts of Beta Co for the years ended 31 March 20x8 and 20x9 are...

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The final accounts of Beta Co for the years ended 31 March 20x8 and 20x9 are shown below: Statement of financial position as at 31 March Fixed assets, at net book value Current assets Stock Debtors Bank Less: Current liabilities Creditors Bank overdraft Net current assets Financed by: Share capital Retained profits and reserves Long term liabilities: 3% Debentures (issued in 20x0) $'000 290 140 55 485 110 0 110 20x9 $'000 280 375 655 100 315 415 240 655 $'000 240 120 20x8 Q 360 100 150 250 $'Or 3 119 425 100 85 185 240 425 Sales Opening stock Purchases Less: Closing stock Cost of sales Gross profit Less: Operating and finance costs Net profit Taxation Net profit after taxation Required: (a) (b) (c) Income statements for the year ended 31 March (d) (e) $'000 (1) 240 1.150 1,390 290 Calculate the following ratios for Beta Co for the years 20x8 and 20x9: 20x9 $'000 1,700 1.100 600 340 260 30 230 $'000 20x8 200 1,090 1,290 Acid test ratio; Debtors' collection period (in days); Gearing ratio; Gross profit to sales percentage; Net profit (before interest and taxation) to sales percentage; and Return on capital employed Note: Round up all figures to ONE decimal place. Show workings 240 $'000 1,500 1.050 450 270 180 20 160 The final accounts of Beta Co for the years ended 31 March 20x8 and 20x9 are shown below: Statement of financial position as at 31 March Fixed assets, at net book value Current assets Stock Debtors Bank Less: Current liabilities Creditors Bank overdraft Net current assets Financed by: Share capital Retained profits and reserves Long term liabilities: 3% Debentures (issued in 20x0) $'000 290 140 55 485 110 0 110 20x9 $'000 280 375 655 100 315 415 240 655 $'000 240 120 20x8 Q 360 100 150 250 $'Or 3 119 425 100 85 185 240 425 Sales Opening stock Purchases Less: Closing stock Cost of sales Gross profit Less: Operating and finance costs Net profit Taxation Net profit after taxation Required: (a) (b) (c) Income statements for the year ended 31 March (d) (e) $'000 (1) 240 1.150 1,390 290 Calculate the following ratios for Beta Co for the years 20x8 and 20x9: 20x9 $'000 1,700 1.100 600 340 260 30 230 $'000 20x8 200 1,090 1,290 Acid test ratio; Debtors' collection period (in days); Gearing ratio; Gross profit to sales percentage; Net profit (before interest and taxation) to sales percentage; and Return on capital employed Note: Round up all figures to ONE decimal place. Show workings 240 $'000 1,500 1.050 450 270 180 20 160

Answer rating: 100% (QA)

To calculate the specified financial ratios for Beta Co for the years 2019 and 2018 we will use the information provided in the Statement of Financial Position and the Income Statements Lets address e... View the full answer