Harold Smart, who is a small manufacturer trading as Space Age Projects, is very pleased with his

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Harold Smart, who is a small manufacturer trading as Space Age Projects, is very pleased with his recently completed financial results which show that a planned 20 per cent increase in turnover has been achieved in the last accounting year.

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Since 30 September 2010, Harold Smart has not taken any drawings from the business. Harold Smart has been invited recently to invest £150,000 for a five-year fixed term in government loan stock earning interest at 121 /2 per cent per annum. Note: Taxation is to be ignored. Notwithstanding his response to these financial results, Harold Smart is a very cautious person and therefore has asked a financial consultant for a report. Required:

(a) A schedule of six accounting ratios or measures of resource utilisation covering each of the three years ended 30 September 2013 of Space Age Projects.

(b) As financial consultant prepare a report to Harold Smart on the financial results of Space Age Projects given above including comments on the alternative future actions that he might take. Note: Reports should utilise the information given in answers to part

(a) of this question. (Association of Accounting Technicians)

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Frank Woods Business Accounting

ISBN: 9780273759287

12th Edition

Authors: Frank Wood. Sangster, Alan

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