Selected financial data (in thousands) of two competitors, AKA Ltd and UFO Ltd, for 2015 are presented
Question:
Selected financial data (in thousands) of two competitors, AKA Ltd and UFO Ltd, for 2015 are presented here:
Required
For each entity, calculate these values and ratios:
(a) Working capital.
(b) Current ratio.
(c) Debt to total assets ratio.
(d) Return on assets.
(e) Profit margin.
(f) Compare the liquidity, solvency and profitability of the two entities.
Transcribed Image Text:
Net sales Cost of sales Borrowing costs (interest expense) Income tax expense Profit Current assets Non-current assets Total assets Current liabilities Non-current liabilities Total equity Total liabilities and equity Total assets AKA Ltd UFO Ltd Selected statement of profit or loss data for year $120 000 65 000 10 500 14 000 16000 Condensed statement of financial position (end of year) $ 33.000 127 000 $160 000 $ 15000 70 000 75 000 $160 000 $100 000 51 000 30 000 4000 5 000 $140 000 $ 20 000 175 000 $195 000 $ 10 000 160 000 25 000 $195 000 Beginning-of-year balances $155 000
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a Working capital AKA Ltd 33000 15000 18000 UFO Ltd 20000 10000 10000 b Current ratio AKA Ltd ...View the full answer
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Related Book For
Financial Accounting Reporting Analysis And Decision Making
ISBN: 9780730313748
5th Edition
Authors: Shirley Carlon, Rosina Mladenovic Mcalpine, Chrisann Palm, Lorena Mitrione, Ngaire Kirk, Lily Wong
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