The following information is taken from the records of XYZ Ltd. Sales for the year 2022...

 

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The following information is taken from the records of XYZ Ltd. Sales for the year 2022 are expected to grow by 15%. Cost of goods sold will remain in the same proportion as before and other operating expenses are expected to reach Rs. 66,000. Extract of its financial position and performance for 2020 and 2021 is given as follows: Particulars 2020 2021 Sales 1,525,000 1,692,750 Cost of goods sold 1,220,000 1,354,200 Other operating expenses 45,000 52,000 Bank 215,000 162,500 Accounts receivable 210,000 265,000 Stock 300,000 380,000 Plant and equipment 480,000 545,000 Prepaid Insurance 45,000 35,000 Accounts payable 125,000 200,000 Outstanding Salaries 95,000 152,500 11% Debentures 300,000 300,000 Equity share capital 450,000 450,000 Retained earnings 130,000 160,000 General Reserve 150,000 125,000 The following information is taken from the records of XYZ Ltd. Sales for the year 2022 are expected to grow by 15%. Cost of goods sold will remain in the same proportion as before and other operating expenses are expected to reach Rs. 66,000. Extract of its financial position and performance for 2020 and 2021 is given as follows: Particulars 2020 2021 Sales 1,525,000 1,692,750 Cost of goods sold 1,220,000 1,354,200 Other operating expenses 45,000 52,000 Bank 215,000 162,500 Accounts receivable 210,000 265,000 Stock 300,000 380,000 Plant and equipment 480,000 545,000 Prepaid Insurance 45,000 35,000 Accounts payable 125,000 200,000 Outstanding Salaries 95,000 152,500 11% Debentures 300,000 300,000 Equity share capital 450,000 450,000 Retained earnings 130,000 160,000 General Reserve 150,000 125,000

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To analyze the financial position and performance of XYZ Ltd for the year 2022 we can calculate various financial ratios and evaluate the changes in k... View the full answer