Laser & Tiger Ltd produces specialised machinery used in the car repair industry. These summarised financial statements have been prepared for two financial years.

You are required to:

1. Calculate the current and acid-test ratios for 20x6 and 20x5 and comment.

2. Calculate three financial structure ratios for 20x6 and 20x5 and comment.

3. Calculate the earnings and dividend yields for 20x6.

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Laser & Tiger Ltd STATEMENT OF FINANCIAL POSITION AS AT 31 MAY 20x6 Notes 20x6 ASSETS Non-current assets Property, plant and equipment at carrying value Long-term investments Current assets Inventories Accounts receivable Short-term investments Cash and cash equivalents TOTAL ASSETS EQUITY AND LIABILITIES Capital and reserves Ordinary share capital (900 000 shares @ R1 each) Retained profit Non-current liabilities Mortgage debentures Current liabilities Short-term borrowings Taxation Accounts payable TOTAL EQUITY AND LIABILITIES 3 4:5 5 6 7 8 9 1 950 000 00 1 815 000 00 1 950 000 001 815 000 00 0100 1 248 000 00 0100 1 050 000 00 450 000 00 300 000 00 225 000 00 75 000 00 3 000 000 003 1 500 000 00 900 000 00 20x5 1 470 000 00 900 000 00 600 000 00 570 000 00 1 050 000 00 1 080 000 00 1 050 000 001 080 000 00 450 000 00 513 000 00 165 000 00 202 500 00 150 000 00 195 000 00 105 000 00 3 000 000 00 532 500 00 375 000 00 262 500 00 78 000 00 063 000 00 145 500 00 3 063 000 00