The details in Figure 16.9 relate to D Co. Using that information and appropriate ratios, prepare a financial report on the company.

The opening inventory value figures were :135,000 20X1 actual and :210,000 20X2 budget.

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Figure 16.9 Financial statements for D Summary balance sheet 31.12.X1 31.12.X2 31.12.X2 Actual Budget Actual 000 000 000 Tangible assets 957 1,530 1,620 Inventory 205 290 325 Receivables 305 720 810 Cash and bank balances 175 70 685 1,080 1,135 Trade payables 175 505 545 Other creditors 187 325 310 Bank overdraft 80 362 830 935 Net current assets 323 250 200 Liabilities 360 360 Net assets 1,280 1,420 1,460 Called-up share capital 800 800 800 Share premium account 200 200 200 Reserves 280 420 460 1,280 1,420 1,460 Income statements (and other changes in equity) 20X1 20x2 20x2 Actual Budget Actual 000 000 000 Sales 2,560 4,500 5,110 Cost of sales (1,700) (3,150) (3,580) Gross profit 860 1,350 1,530 Admin. and distribution costs (655) (880) (1,084) Operating profit 205 470 446 Interest payable (20) (35) 205 450 411 Taxation (95) (200) (185) 110 250 226 Extraordinary items 9 (2) 3 119 248 229 Dividends (82) (108) (49) Retained earnings 37 140 180