At 30 September 20X3 3,600 3,060 540 (ii) The exceptional item relates to losses on the sale of a batch of computers that had become worthless due to improvements in microchip design. (iii) The market price of Comparator's shares throughout the year averaged $6.00 each. Calculate the ratios for Comparator equivalent to those provided by the interfirm comparison service. (b) Write a report analysing the financial performance of Comparator based on a comparison with the sector averages. (25 marks) I Ols Help Q Normal fork_project (1).docx BIUA EE Comparator assembles computer equipment from bought in components and distributes them to various wholesalers and retailers. It has recently subscribed to an interfirm comparison service. Members submit accounting ratios as specified by the operator of the service, and in return, members receive the average figures for each of the specified ratios taken from all of the companies in the same sector that subscribe to the service. The specified ratios and the average figures for Comparator's sector are shown below. Ratios of companies reporting a full year's results for periods ending between 1 July 20X3 and 30 September 20X3: Return on capital employed 22.1% Net asset turnover 1.8 times Gross profit margin 30% Net profit (before tax) margin 12.5% Current ratio 1.6:1 Quick ratio 0.9:1 Inventory days 46 days Receivable's days 45 days Payable's days 55 days 40% Debt to equity Dividend yield 6% 3 times Dividend cover Comparator's financial statements for the year to 30 September 2003 are set out below: Statement of profit or loss $000 Revenue Cost of sales 2,425 (1,870) Gross profit Other operating expenses 555 (215) Profit from operations 340 Finance costs (34) Exceptional item (note (ii)) (120) Profit before taxation Taxation Profit for the year 186 (90) 96 96 T Notes: Extract of changes in equity: Retained earnings - 1 October 20X2 Profit for the year Dividends paid (interim $60,000; final $30,000) Retained earnings - 30 September 20X3 IT !! $000 179 96 96 (90) 185 Statement of financial position $000 $000 $000 Noncurrent assets 540 Current assets Inventory Receivables 275 320 Bank nil 595 1,135 Equity Ordinary shares (25 cents each). 150 Retained earnings 185 335 Noncurrent liabilities 8% loan notes Current liabilities Bank overdraft 65 55 Trade payables 350 Taxation 300 85 500 1,135 (i) The details of noncurrent assets are: At 30 September 20X3 Cost Accumulated Carrying Value depreciation $000 $000 $000 3,600 3,060 540 (ii) The exceptional item relates to losses on the sale of a batch of computers that had become worthless due to improvements in microchip design. (iii) The market price of Comparator's shares throughout the year averaged $6.00 each. Calculate the ratios for Comparator equivalent to those provided by the interfirm comparison service. (b) Write a report analysing the financial performance of Comparator based on a comparison with the sector averages. (25 marks)