Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Calculate the required ratios for 2019 and 2020 using the given details. Use the blank table provided below for your answer. 1. Current ratio
Calculate the required ratios for 2019 and 2020 using the given details. Use the blank table provided below for your answer. 1. Current ratio II. Quick ratio Income Statement Sales COGS Gross Profit Operating Expenses Profit Before Interest & Tax Interest Profit Before Tax Taxation Profit After Taxation 2019 $"000" 100 40 60 20 40 10 30 9 III. Inventory turnover IV. Debt to Equity V. Times interest 21 2020 $"000" 135 55 80 23 57 10 47 10 37 Balance Sheet Non Current Assets FP&E Current Assets Inventory Receivables Cash Total Current Ass Total Assets Non Current Liabilities Loans Current Liabilities Payables Total Liabilities Equity Share Capital Retained Earnings Total Equity Total Liabilities & 2019 2020 $"000" $"000" 600 40 30 10 80 680 200 20 220 150 310 460 680 640 24522 15 82 722 200 25 225 150 347 497 722 b. Write a short interpretation of the performance of the company based on the ratios calculated. Use the same blank table provided below for your answer. c. Prepare a common size analysis using the template provided. Use below tables for your answer Financial Analysis Ratio Current ratio Quick ratio Inventory turnover Debt to Equity Times interest Common Size Analysis 2019 2019 2020 Interpretation 2020 3 of 11 Income Statement Sales COGS Gross Profit Operating Expenses Profit Before Interest & Tax
Step by Step Solution
★★★★★
3.45 Rating (158 Votes )
There are 3 Steps involved in it
Step: 1
The detailed ...Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started