Calculate the below ratios for the 2020 budgeted income statement

1. ROCE

Operating profit /Capital employed x100

2019

1,640/8,440* =19.4%

*2,810-200+5,830

2. Operating margin

Operating profit /Sales x100

2019

1,640/16,000=10.3%

3. Asset turnover

Sales/Capital employed

16,000/8,440=1.90x

4. Receivables

Receivables/Sales x 365 days

2019

0 /16,000x 365= 0 days

5. Payable day

Payables/ Cost of sales x 365

2019

2,300 /10,560x 365 = 80 days

6. Inventory days

Inventory /Cost of sales x 365

2019

3,200 /10,560vx 365 =111 days

7. Gearing

Net debt/Equity x 100

2019

2,610*/5,830 x100

*2,810-200

8. Interest

Operating/Interest Cost

2019

1,640/300= 5.5x

Statement of Comprehensive Income 2020

R000 R000

Sales (16000+5800+2700) 24,500 24,500

Cost of sales -

Opening inventory 3,200

Purchases 17,800

Less closing inventory 4,100 16,900

Gross Profit 7,600

Staff wages and salaries 2,700

Other store costs 1,120

Selling and advertising costs 600

Administration and head office costs 340

Distribution costs 460 5,220

Operating Profit 2,380

Finance cost 300 300

Profit before tax 2,080

Taxation 728

Profit for the year 1,352

Statement of Financial Position 2020R000R000

Non-Current Assets

Land & buildings 7,200

Furniture & fittings (-300+2500+720+580+630) 4,130

Vehicles (-50+180) 130 11,460

Current Assets

Inventory 4,100

Trade receivables 400 4,500

Total assets 15,960

Equity

Share capital 3,000

Retained profits 4,182 7,182

Non- Current liabilities

Loan 2,810 2,810

Current Liabilities

Overdraft 3,240

Trade payables 2,000

Tax payable 728 5,968

Total Equity and Liabilities 15,960

Cash Flow Statement 2020R000R000

Cash In

Opening balance 200 200

Sales 24,500

Less Credit card sales not yet received 400 24,100

Cash out

Payments to creditors (2300+17800-2000)18,100

Staff wages 2,700

Other store costs (less depreciation) 820

Selling and advertising costs 600

Administration and Head office costs 340

Distribution costs (less depreciation) 410

Loan Interest 300

Capital expenditure

Shop Fitting 1,300

New stores 2,500

Taxation - last year 470 27,540

Overdraft required (balancing figure) -3,240

Statement of Comprehensive Income 2019

R000 R000

Sales 16,000

Cost of sales

Opening inventory 2,800

Purchases 10,960

13,760

Less closing inventory (3,200)

(10,560)

Gross Profit 5,440

Staff wages and salaries (2,080)

Other store costs (780)

Selling and advertising costs (320)

Administration and head office costs (280)

Distribution costs (340)

(3,800)

Operating Profit 1,640

Finance cost (300)

Profit before tax 1,340

Taxation (470)

Profit for the year 870

Statement of Financial Position 2019

R000

Non-Current Assets

Land & buildings 7,200

Furniture & fittings 630

Vehicles 180

8,010

Current Assets

Inventory 3,200

Cash 200

3,400

Total Assets 11,410

Equity

Share capital 3,000

Retained profits 2,830

5,830

Non- Current liabilities

Loan 2,810

Current Liabilities

Trade payables 2,300

Tax payable 470

2,770

Total Equity and Liabilities 11,410