The following information relate to KIOKO Enterprices: Profit Statement for the year ended 31 December Sales...
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The following information relate to KIOKO Enterprices: Profit Statement for the year ended 31" December Sales Less cost of goods sold Gross profit Sources of Capital Ordinary share Capital authorized & issued (E1 share) 2019 2020 1000 1000 Less: Trading expenses Trading profit Less: Debenture interest Net profit before taxation 40 100 Less: corporation Tax Net profit after taxation 135 125 Less: Ordinary share dividend 25 25 Undistributed profit for year 110 100 Balance Sheet as at 31" December (£000s) 2019 2020 £ £ Retained earnings 10% Debentures 600 500 200 100 400 400 200 150 200 250 25 25 175 225 Use of capital Fixed Assets at cost Less: Depreciation 900 700 Current Assets: Stock 110 100 Debtors 540 310 Cash 1550 1110 Less Current Liabilities Creditors Taxation Proposed dividend Bank Overdraft 125 75 50 2019 (a) STOCK TURNOVER RATIO (b) NET PROFIT MARGIN RATIO Question 2 Discuss the uses of ratios £ 900 50 850 450 200 200 400 350 950 650 200 50 2020 25 (c) QUICK RATIO (d) DEBT RATIO (e) DEBTORS COLLECTION PERIOD £ 800 40 760 You are required to calculate the following ratios for both 2019 and 2020 and comment on the performance according to each ratio comparing both years: (250) (300) 1550 1110 The following information relate to KIOKO Enterprices: Profit Statement for the year ended 31" December Sales Less cost of goods sold Gross profit Sources of Capital Ordinary share Capital authorized & issued (E1 share) 2019 2020 1000 1000 Less: Trading expenses Trading profit Less: Debenture interest Net profit before taxation 40 100 Less: corporation Tax Net profit after taxation 135 125 Less: Ordinary share dividend 25 25 Undistributed profit for year 110 100 Balance Sheet as at 31" December (£000s) 2019 2020 £ £ Retained earnings 10% Debentures 600 500 200 100 400 400 200 150 200 250 25 25 175 225 Use of capital Fixed Assets at cost Less: Depreciation 900 700 Current Assets: Stock 110 100 Debtors 540 310 Cash 1550 1110 Less Current Liabilities Creditors Taxation Proposed dividend Bank Overdraft 125 75 50 2019 (a) STOCK TURNOVER RATIO (b) NET PROFIT MARGIN RATIO Question 2 Discuss the uses of ratios £ 900 50 850 450 200 200 400 350 950 650 200 50 2020 25 (c) QUICK RATIO (d) DEBT RATIO (e) DEBTORS COLLECTION PERIOD £ 800 40 760 You are required to calculate the following ratios for both 2019 and 2020 and comment on the performance according to each ratio comparing both years: (250) (300) 1550 1110
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The image you provided contains a profit statement for the year ended 31st December for 2019 and 2020 as well as a balance sheet as of 31st December for the same years for KIOKO Enterprises You are re... View the full answer
Related Book For
Financial Accounting Tools for Business Decision Making
ISBN: 978-1119368458
7th Canadian edition
Authors: Paul D. Kimmel, Jerry J. Weygandt, Donald E. Kieso, Barbara Trenholm, Wayne Irvine
Posted Date:
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