From the financial statements of Ocean Ltd, a retailer, identify:

(a) Five points of interest from comparing this year’s results with those of the previous year.

(b) Calculate relevant ratios for Ocean Ltd to enable you to assess the performance of the company in the current year.

(c) Identify any further information you might find useful.

Note inventory, debtors and creditors figures at 1.1.20X0 were £102,000, £100,000 and £60,000 respectively.

Transcribed Image Text:

INCOME STATEMENTS FOR THE YEARS ENDED 31.12.20X0 31.12.20X1 000 000 Sales 1,168 1,944 Cost of sales 778 1,370 Gross profit 390 574 Wages and salaries 156 202 Depreciation 32 62 Other expenses 108 124 Operating profit 94 186 Interest on debentures 16 Net profit before tax 170 Taxation Net profit after tax Dividends Retained profit 8 32 78 92 32 46 30 46