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answer ASAP information from profil are income ta Question Cygnus company that wholesales non lectrical othco equipment. The year fog rata nitial interest rate of

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answer ASAP
information from profil are income ta Question Cygnus company that wholesales non lectrical othco equipment. The year fog rata nitial interest rate of 12% per annum in order to purchase company anyone warehouse and has requested a bom loon of onio computer Gument to maintainventory and other records The Onvestment Cyrus' revenue increased by 99% during the last financial year. The equipment will not matonally change the company's current average percentage or the year paid in the ye statements for are follow wative ratio in Femings Ratio Balance Sheet as at 31 March 2020 000 2015 EO Ratio (%) Ratio est Ratio Non-current assets Property, plant & equipment 15.080 1432 on Capital En ng Margine 31.540 21 80s shares a Current assets Inventories Receivables Investment Cash and cash equivalents 24220 17.540 8.760 10.060 1,700 980 85.320 50279 82.380 54.800 Required: You Cygnu POSS Current liabilities Overdraft Trade payables Current taxation 16,340 13.220 20.920 15.280 2.420 2,800 39.680 31.300 Non-current liabilities Long-term borrowings Debentures 5,000 16,000 16,000 22.000 16000 2 3. 4 5 6 7 Share capital and reserves Equity share 10 p each (38 million shares) Retained profit Total equity 3,800 3,800 16,900 13,500 20,700 17.300 D) Pre 82 380 64.600 cal tet pc 90 UL20/0369 Page 6 of 10 mation from the Income Statement for year to 31 March pro equipment. The 56 million (eve- purchase new The computer centage return ncial year. The E000 99 350 10,760 (3,840) 6.920 12.420) 4,500 1100 e income tax the year in the year ative ratio Information for Cygnus' Industry (averages) angs Ratio 2020 E'000 2019 (95) 2000 Ratio 2020 20 52.4 1:1 1:1 16.5 9.0 16.060 14,380 Capital Employed (6) Ratio Margin (%) 1.640 21.850 shares are currently traded at 15.0 p. 4,220 17.340 8.760 10.060 1.700 332050.229 2.380 64.600) 960 Required: You are a consultant for Cygnus plc. Calculate the following ratios for 340 Cygnus for the financial years ended 31 March 2019 and 2020 where 13,220 possible: .920 15,280 420 2,800 1. Return on Capital Employed 680 31,300 2. Operating Margin 3. Current Ratio 000 4. Acid Test Ratio 900 16,000 5. Inventory Holding Period 300 16.00.9 6. Creditors Payment Period 7. Gearing Ratio 300 3,800 8. Price Earnings Ratio (15 marks) 00 13,500 00 17.300 64.60Prepare a short report (with five meaningful comments) based on ratios 80 calculated for part a) to present to Cygnus directors in support of the new term loan. Use industry averages as benchmarks for your analysis whenever possible. (5 marks) [Total: 20 Marks) 20369 Page 7 of 10

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