Question
Hi There can you please help me with this question? 13 The following information from Safaricom (Pty) Ltd standardised statement of financial position and statement
Hi There can you please help me with this question?
13
The following information from Safaricom (Pty) Ltd standardised statement of financial position and statement of comprehensive income are provided to you.
Assets | 2021 |
Property, plant and equipment (PPE) at cost price | 320 000 |
Accumulated depreciation | (239 000) |
PPE at carrying value | 81 000 |
Goodwill | 60 000 |
Investment in shares | 8 000 |
Non-current assets | 149 000 |
Inventories | 43 000 |
Trade receivables | 32 000 |
Cash and cash equivalents | 24 000 |
Current assets | 99 000 |
Total Assets | 248 000 |
Equity and liabilities | |
Share capital | 100 000 |
Reserves | 10 000 |
Retained earnings | 11 200 |
Ordinary shareholders equity | 121 200 |
Preference shares | 30 000 |
Shareholders equity | 151 200 |
Non-controlling interest | 22 000 |
Total equity | 173 200 |
Long-term debentures | 30 000 |
Long-term loan | 4 000 |
Non-current liabilities | 34 000 |
Trade payables | 20 000 |
Other payables | 16 800 |
Tax payable | 4 000 |
Current liabilities | 40 800 |
Total equity and liabilities | 248 000 |
Statement of comprehensive income | 2021 |
Turnover | 274 000 |
Cost of sales and services rendered | (207 500) |
Gross profit | 66 500 |
Operating expenses | (26 500) |
Operating income | 1 500 |
Operating profit | 41 500 |
Investment income | 4 000 |
Finance cost | (6 000) |
Profit before tax | 39 500 |
Tax | (16 700) |
Profit after tax | 22 800 |
Non-controlling interest | (1 000) |
Preference share dividends | (2 400) |
Attributable earnings | 19 400 |
Ordinary dividends | (3 600) |
Retained earnings (for the year) | 15 800 |
Additional information:
- Purchases on credit for the year amount to R80 000
- Lease payments of R10 000 were made during the year.
- The company has 10 000 ordinary shares in issue.
- The market price per share amounts to R10.
- DO NOT USE AVERAGES IN THIS QUESTION
As the Finance and Marketing Manager you have been tasked with reviewing the performance of the business by CALCULATING for the year ended 31 December 2022 the following ratios.
13. 1 Profit margins ratios:
a. Gross Profit margin (1)
b. Operating profit margin (1)
c. Earnings before interest and tax margin (1)
d. Net Profit margin (1)
13.2 Liquidity ratios
a. Current ratio (2)
b. Quick ratio (2)
13.3 Solvency ratios
a. Debt-to-asset (2)
b. Debt-to-equity (2)
c. Financial leverage (2)
13.4 Investment Ratios
a. Earnings per share (2)
b. Dividend per share (2)
c. Price earnings ratio (2)
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