Question

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Posted on Jul 07, 2024

For these monteading 30 November None Seyt all 4G Oxt Nov Check From Expected Sales 22.30.000 20.000 250.000 1.40,000 120,000 10,000 2.10.000.000 250.000 1,40,000 220,000

For these monteading 30 November None Seyt all 4G Oxt Nov Check From Expected Sales 22.30.000 20.000 250.000 1.40,000 120,000 10,000 2.10.000.000 250.000 1,40,000 220,000 110,000 Cash Payments For Purches For Credit Card Expense Forros For Spees Forum For Lonest 11.000 0.000 1.42.000.000 7.000 10 2.100 1,000 1,690 0.000 41.000.000 31.000 1.000 00.000 E22,000 24000 28,000 25,000 21,000 E19,000 122.000 1.000 L000 2.000 EL000 1,000 11,000 400C 1.000 4000 000 4.000 4,000 34.000 18.000 E8.000 22.08. 22.00 22.56.750 1.65.100 1.13,300 421,650 For Shop Renes Net Castro Beginning Chann landing Cashmere 452,200 00 1.100 C300 11. 30.000 ES350 2.0.150 199.000 2.72,900 239.100 1.SAS 02.05.201.97.000 41,72,900 1,19,100 1,41,450 11,20.000 5,20,000 ES, 50,000 Projected Income Statement For these months ending 30 November Expected Sales Less Cost of Goods Sold Gross Marga Selling & Admin Expenses Selling Expenses 1,36.000 Admin Expenses 13,03,000 Credit card expenses 07550 Total Selling An Expenses Operating income Less Interest Expense and income before tas Less: Income Tax Expenses Net Income 64,56,550 E93.450 26.000 687 450 77,000 10.450 Projected Statement of Financial position at November ASSETS Non-Current Assets Power Plant and Equipment (560,000+ 38,000 - 90.000) Current Assets Cash 11.47.450 Inventory 224.000 ES, 08.000 171.450 Total Assets 8,79,450 EQUITY AND LIABILITIES Equity 2,30,000 02.10.450 E4,40,450 86,000 Non-Current Liabilities Borrowings Loans Current Trade payables Total equity and bites 1,53,000 6,19,450 Question 2a Based on the future estimates, calculated projected income statement and projected financial position statement in Question 1, please calculate and interpret the following ratios: Profitability Ratios a) ROSF b) ROCE c) Gross Profit Margin (GPM) d) Operating Profit Margin (OPM) e) Net Profit margin (NPM) f) ROA Efficiency Ratios a) Inventories Turnover Period b) Settlement Period for Receivables c) Settlement Period for Payables' d) Sales Revenue to Capital Employed Liquidity Ratios a) Current ratio. b) Acid test ratio Gearing Ratio a) Gearing ratio b) Interest coverage ratio (25 Marks) Solution: 2:02 4G For the six months ending 20 November Aug Cash Receipts: From Expected Sales Total Receipts 22.30.000 3.20.000 250.000 40.000.000 22.000 320.000 56,000 140,000 2000 30000 . GL. Cash Payments For Purchas For Credit Card Expense For Admiteres For Salling Expenses For Tax Payment Roraires For Loan payment For Shop Murshment Total Payments 135.000 1.100.000 14.000 234.000 14.00 LADDOC 41.000 22.000 L. 1.000 1.000 22.000 EL000 1,000 1.000 4.000 ED 5400 14.000 C.000 1.000 22.00.250 2.60.000 2.56.750 6.100 50 300 Net Cashflows Beginning Cance Ending Cash Balance 51,200 6750 10.000 1.50 12.05.250 5.000 2200 300 1.5 2,057,000 172.900.000 2000 E 2000 25.50.000 Projected Income Statement for the six months ending 20 November Expected Sales Lesst Cost of Goods Sold Gross Margin Selling & Admin Expenses Selling Expenses E136.000 Admin Expenses CLIC Credit card expenses 17:55 Total Selling & Admin Expenses Operating income Less interest Expenselan) income before tax Less income Tax Expenses Net Income 54 56 550 66.000 . E72000 30.450 Projected Statement of Financial position at 30 November ASSETS Non-Current Assets Power Plant and Equipment 560,000+ 38.000 - 50.000 Current Assets E1 47450 Inventory DL S08,000 Total Assets 2.50 EQUITY AND LIABILITIES: Equity Share Capital Retained Earnings 20150 EDOC Non Current Liabilities: Borrowings Loans Current Liabilities: Trade payables Total equity and liabilities 5.000 EA For these monteading 30 November None Seyt all 4G Oxt Nov Check From Expected Sales 22.30.000 20.000 250.000 1.40,000 120,000 10,000 2.10.000.000 250.000 1,40,000 220,000 110,000 Cash Payments For Purches For Credit Card Expense Forros For Spees Forum For Lonest 11.000 0.000 1.42.000.000 7.000 10 2.100 1,000 1,690 0.000 41.000.000 31.000 1.000 00.000 E22,000 24000 28,000 25,000 21,000 E19,000 122.000 1.000 L000 2.000 EL000 1,000 11,000 400C 1.000 4000 000 4.000 4,000 34.000 18.000 E8.000 22.08. 22.00 22.56.750 1.65.100 1.13,300 421,650 For Shop Renes Net Castro Beginning Chann landing Cashmere 452,200 00 1.100 C300 11. 30.000 ES350 2.0.150 199.000 2.72,900 239.100 1.SAS 02.05.201.97.000 41,72,900 1,19,100 1,41,450 11,20.000 5,20,000 ES, 50,000 Projected Income Statement For these months ending 30 November Expected Sales Less Cost of Goods Sold Gross Marga Selling & Admin Expenses Selling Expenses 1,36.000 Admin Expenses 13,03,000 Credit card expenses 07550 Total Selling An Expenses Operating income Less Interest Expense and income before tas Less: Income Tax Expenses Net Income 64,56,550 E93.450 26.000 687 450 77,000 10.450 Projected Statement of Financial position at November ASSETS Non-Current Assets Power Plant and Equipment (560,000+ 38,000 - 90.000) Current Assets Cash 11.47.450 Inventory 224.000 ES, 08.000 171.450 Total Assets 8,79,450 EQUITY AND LIABILITIES Equity 2,30,000 02.10.450 E4,40,450 86,000 Non-Current Liabilities Borrowings Loans Current Trade payables Total equity and bites 1,53,000 6,19,450 Question 2a Based on the future estimates, calculated projected income statement and projected financial position statement in Question 1, please calculate and interpret the following ratios: Profitability Ratios a) ROSF b) ROCE c) Gross Profit Margin (GPM) d) Operating Profit Margin (OPM) e) Net Profit margin (NPM) f) ROA Efficiency Ratios a) Inventories Turnover Period b) Settlement Period for Receivables c) Settlement Period for Payables' d) Sales Revenue to Capital Employed Liquidity Ratios a) Current ratio. b) Acid test ratio Gearing Ratio a) Gearing ratio b) Interest coverage ratio (25 Marks) Solution: 2:02 4G For the six months ending 20 November Aug Cash Receipts: From Expected Sales Total Receipts 22.30.000 3.20.000 250.000 40.000.000 22.000 320.000 56,000 140,000 2000 30000 . GL. Cash Payments For Purchas For Credit Card Expense For Admiteres For Salling Expenses For Tax Payment Roraires For Loan payment For Shop Murshment Total Payments 135.000 1.100.000 14.000 234.000 14.00 LADDOC 41.000 22.000 L. 1.000 1.000 22.000 EL000 1,000 1.000 4.000 ED 5400 14.000 C.000 1.000 22.00.250 2.60.000 2.56.750 6.100 50 300 Net Cashflows Beginning Cance Ending Cash Balance 51,200 6750 10.000 1.50 12.05.250 5.000 2200 300 1.5 2,057,000 172.900.000 2000 E 2000 25.50.000 Projected Income Statement for the six months ending 20 November Expected Sales Lesst Cost of Goods Sold Gross Margin Selling & Admin Expenses Selling Expenses E136.000 Admin Expenses CLIC Credit card expenses 17:55 Total Selling & Admin Expenses Operating income Less interest Expenselan) income before tax Less income Tax Expenses Net Income 54 56 550 66.000 . E72000 30.450 Projected Statement of Financial position at 30 November ASSETS Non-Current Assets Power Plant and Equipment 560,000+ 38.000 - 50.000 Current Assets E1 47450 Inventory DL S08,000 Total Assets 2.50 EQUITY AND LIABILITIES: Equity Share Capital Retained Earnings 20150 EDOC Non Current Liabilities: Borrowings Loans Current Liabilities: Trade payables Total equity and liabilities 5.000 EA