You are given in Figure 7.12, in summarized form, the financial statements of Non Co.

for the years 20X2 and 20X3.

Six months after each of the two year-ends, a dividend of i20,000 is paid in relation to the results of that year.
Prepare a table of ratios calculated for both years, showing your calculations, and comment on the position, progress and direction of Non Co. as far as the available evidence permits.

Transcribed Image Text:

Figure 7.12 Financial statements for Non Co. For 20X2 and 20X3 20X3 Balance sheet (000) 20X2 Balance sheet (000) Building - cost Machinery - cost - depreciation 11 90 15 6 10 14 50 - depreciation 11 580 6 10 79 40 Investment at cost 80 50 Land 63 43 Inventory 65 55 Receivables 50 40 Bank - 3 237 343 Ordinary shares of 1 each 50 40 Share premium 14 12 Revaluation reserve 20 Retained earnings 25 25 Debenture loan, 10% p.a. 150 100 Trade payables 60 40 Other creditors and accruals 20 20 Bank 4 - 343 237