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1000 words please, do it as soon as possible thanks Required: You have been hired as a Financial Analyst to provide your client with advice

1000 words please, do it as soon as possible thanks image text in transcribed
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Required: You have been hired as a Financial Analyst to provide your client with advice on the future of their business operations. The following information relates to Headzup Limited for the two years to 30 June 2020 and 2021, respectively: You should include an analysis of the following accounting ratios for the two years 2020 and 2021: gross profit capital turn return on capital employed. operating cash flow to operating profit ratio current ratio debt to equity ratio earnings per share Write your client a comprehensive Business Report commenting on the company's performance for the year to 30 June 2020 and its health. - You should conclude with recommendations on how the company can improve. 2020 Statement of profit or loss for the years 2020 and 2021 2021 000 000 000 000 Sales (all credit) 1500 1900 Less: Cost of goods sold: Opening inventory 80 100 Purchases (all on credit terms) 995 1400 Less: Closing inventory (100) (975) (200) (1300) 2022 000 000 000 000 Gross profit 525 600 Less: Expenses (420) (495) 2021 Net profit 105 105 000 420 500 1000 1420 Statement of financial position as at 30 June 2021 2022 000 000 000 Non-current assets (net book value) 685 Current assets Inventory 100 200 Trade receivables 375 800 Cash 25 1185 Capital and reserves Ordinary share capital 900 900 9,000,000 10p shares) Profit and loss account 205 310 Shareholders' funds 1105 Current liabilities Bank overdraft 10 Trade payables 80 80 200 1185 1210 210 1420 Statement of cash flows (extract) for the years 2020 and 2021 2021 2022 000 000 000 Operating cash flow 100 Investing cash flow 10 Financing cash flow 25 Nat cash flows 125 000 200 (80) 120

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