The financial statements for Harridges Ltd are given below for the two years ended 30 June 2020

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The financial statements for Harridges Ltd are given below for the two years ended 30 June 2020 and 2021. Harridges Limited operates a department store in the centre of a small town.image text in transcribed

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Dividends were paid on ordinary shares of £65,000 and £75,000 in respect of 2020 and 2021, respectively.
Required:

(a) Choose and calculate eight ratios that would be helpful in assessing the performance of Harridges Ltd. Use end-of-year values and calculate ratios for both 2020 and 2021.

(b) Using the ratios calculated in

(a) and any others you consider helpful, comment on the business’s performance from the viewpoint of a prospective purchaser of a majority of shares.

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Financial Accounting For Decision Makers

ISBN: 9781292409184

10th Edition

Authors: Peter Atrill, Eddie McLaney

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