Dec2020 Online / BBA 2204/ Set B QUESTION FOUR The following is an extract from the Annual report of two listed companies. Company Number 1: Statement of Financial Position Anta Marsha 2016 LIR UKR Non Cunert Annota Property do brant 11 4,000.169,774 4,204,000,000 574,687,981 100,002,607 2177710142 3,672 4,30 DOGO 74.76417 05.000.679 27 ans Other Rece 15 Income Tax Receive CE 7312.0,704 1.454,555,850 1,06401410 241 878.185 7.112.109,157 7.7210100 15.090.171.616 14,113 25.087.892,158 23,541,000 Sand Capital Fotod 7.676.573,000 7,570.573 900 10,508,897,567 10,545, 18.385,471,45719.124.000.500 65,347.000 Den Boot Detox 2.1 01.087.730 547 115.37 15,455,575 Tiade and Others Bingo 416,600,065 30. 108,431,00 2,202,848,729 307,770532 6,627,955,126 4,80) 2007 26,087,882,168 23,041,200.000 Tomado Company Number 2: CURRENT ASSETS 1,570,577 152.242 2,301,441 307,466 1,521,808 198,999 2558,126 385,161 Inventories Biological assets Trade and other receivables Tox recoverable Amounts due from subsidiaries Amounts due from former fellow subsidiaries Amounts due from related parties Derivatives Barik balances, deposits and cash 28 18 27 26 29 29 29 30 31 43,031 2.559 57,226 363,238 4,754,749 56,184 713,448 5.476,757 32 Non-current assets held for sale TOTAL ASSETS 218,964 27,491,675 183,594 29,454.877 Page 6 Dec2020 Online / BBA 2204/ Set B CURRENT LIABILITIES 42 1,588,102 19,275 41 1772.710 26,707 145,192 Trade and other payables Deferred Income Amount due to former immediate holding company Amounts due to subsidiaries Amounts due to former fellow subsidiaries Amounts due to related parties Retirement benefits Finance lease obligations Tox payable Derivatives Borrowings 29 29 29 29 38 40 1441,523 54,104 10,485 823 160,509 24,502 1,094,194 2.951,994 30 2.993 267.720 27.732 325,449 5010,241 39 32 Llabilities directly associated with non-current assets held for sale TOTAL LIABILITIES TOTAL EQUITY AND LIABILITIES 45,993 11,177,873 27,491,675 15.395 14 331.522 29.454 877 REQUIRED: a. For each company, compute the following ratios (ignore the years): Formula No Ratio Co.1 Yr 1 Co.1 Yr 2 Co.2 Yr1 Co.2 Yr 2 Clue 1 2. 3. 4. 5. Current Ratio Gearing Cash Ratio - 1 Cash Ratio - 2 Asset Financing CA/CL TL / EQ Cash / CL Cash/TA TB/TA (10 marks] b. Explain which company's ratio is "healthier" No Ratio Which Company Ratio is better? Explain your reason 1 2. 3. 4. 5. Current Ratio Gearing Cash Ratio - 1 Cash Ratio - 2 Asset Financing [10 marks ] c. Write a short note to explain the importance of positive working capital, i.e. where the Current Ratio is greater than 1. Page 7 Dec2020 Online / BBA 2204/ Set B QUESTION FOUR The following is an extract from the Annual report of two listed companies. Company Number 1: Statement of Financial Position Anta Marsha 2016 LIR UKR Non Cunert Annota Property do brant 11 4,000.169,774 4,204,000,000 574,687,981 100,002,607 2177710142 3,672 4,30 DOGO 74.76417 05.000.679 27 ans Other Rece 15 Income Tax Receive CE 7312.0,704 1.454,555,850 1,06401410 241 878.185 7.112.109,157 7.7210100 15.090.171.616 14,113 25.087.892,158 23,541,000 Sand Capital Fotod 7.676.573,000 7,570.573 900 10,508,897,567 10,545, 18.385,471,45719.124.000.500 65,347.000 Den Boot Detox 2.1 01.087.730 547 115.37 15,455,575 Tiade and Others Bingo 416,600,065 30. 108,431,00 2,202,848,729 307,770532 6,627,955,126 4,80) 2007 26,087,882,168 23,041,200.000 Tomado Company Number 2: CURRENT ASSETS 1,570,577 152.242 2,301,441 307,466 1,521,808 198,999 2558,126 385,161 Inventories Biological assets Trade and other receivables Tox recoverable Amounts due from subsidiaries Amounts due from former fellow subsidiaries Amounts due from related parties Derivatives Barik balances, deposits and cash 28 18 27 26 29 29 29 30 31 43,031 2.559 57,226 363,238 4,754,749 56,184 713,448 5.476,757 32 Non-current assets held for sale TOTAL ASSETS 218,964 27,491,675 183,594 29,454.877 Page 6 Dec2020 Online / BBA 2204/ Set B CURRENT LIABILITIES 42 1,588,102 19,275 41 1772.710 26,707 145,192 Trade and other payables Deferred Income Amount due to former immediate holding company Amounts due to subsidiaries Amounts due to former fellow subsidiaries Amounts due to related parties Retirement benefits Finance lease obligations Tox payable Derivatives Borrowings 29 29 29 29 38 40 1441,523 54,104 10,485 823 160,509 24,502 1,094,194 2.951,994 30 2.993 267.720 27.732 325,449 5010,241 39 32 Llabilities directly associated with non-current assets held for sale TOTAL LIABILITIES TOTAL EQUITY AND LIABILITIES 45,993 11,177,873 27,491,675 15.395 14 331.522 29.454 877 REQUIRED: a. For each company, compute the following ratios (ignore the years): Formula No Ratio Co.1 Yr 1 Co.1 Yr 2 Co.2 Yr1 Co.2 Yr 2 Clue 1 2. 3. 4. 5. Current Ratio Gearing Cash Ratio - 1 Cash Ratio - 2 Asset Financing CA/CL TL / EQ Cash / CL Cash/TA TB/TA (10 marks] b. Explain which company's ratio is "healthier" No Ratio Which Company Ratio is better? Explain your reason 1 2. 3. 4. 5. Current Ratio Gearing Cash Ratio - 1 Cash Ratio - 2 Asset Financing [10 marks ] c. Write a short note to explain the importance of positive working capital, i.e. where the Current Ratio is greater than 1. Page 7