i will make it two picture
QuestionI The summarised financial statements of Jupiter ple and Juno ple for the year ended 30 June 2018 are set out below. Both companies operate in the retail sector tm Ficial Ptin t 30 Jane 2 er p ple NoCarre Aets Popetyplant & opuipment Intanghle ats 44c 354 4814 Carrest Assets Ivcntories Trade Racenables S12 125 272 Hanka 1212 Carret Lish Trade Payabl Bank Ovedraf 714 Net Currest Asset Tetal Ausets ss carrent libis Non-Carret Lisbilitis Long Tem Loa 5312 Net Assets 272 Equity Ondinary Share Capitl Retined Eaings Total Eqsity Shae 2000 3272 aat of Pr&Los fer the yar ended 30 June 2 Sales Reven Cost of Sales s90 4420 os Pro Operating Expeses Operating Pof ntnt Payable Po beoe aion ation Profa aer ta ns 200 25 578 Divideds paid Required: Your client is considering an investment in the ordinary shares of either of the above companies and would like you to write a report advising which of the two would make the better investment. Your report should include the following: o The calculation of a selection of TEN ratios for each company which will help assess the profitability, asset management, short-term solvency and long term financial health of the companies. (Please do not calculate any more than 10). (20 marks) An evaluation of the ratios you have calculated. (20 marks) An identification and discussion of two other types of information which would be helpful in making an investment decision. (4 marks) (iv) A brief discussion of some of the limitations of ratio analysis (6 marks) Question The summarised financial statements of Jupiter plc and Juno ple for the year ended 30 June 2018 are set out below. Both companies operate in the retail sector Jupiter ple 000s Statement of Financial Position as at 30 June 2018 Juno ple o00s Non-Current Assets Property. plant & equipment Intangible assets 8296 4460 1460 354 9756 4814 Current Assets Inventories 1750) 812 128 Trade Receivables 450 Bank 272 1212 2200 Current Liabilities Trade Payables Bank Overdraft 962 714 306 1268 714 Net Current Assets 932 498 Total Assets less current liabilities Non-Current Liabilities 10688 5312 Long Term Loans Net Assets 5200 2040 3272 5488 Equity Ordinary Share Capital (E1 Shares) Retained Earnings Total Equity 2000 3488 1000 2272 3272 5488 Statement of Profit & Loss for the year ended 30 June 20188 Sales Revenue 8600 5910 4420 3700 Cost of Sales Gross Profit Operating Expenses Operating Profit Interest Payable Profit before taxation 4900 1490 1842 494 3058 996 500 200 2558 796 220 520 2038 taxation 576 Profit after taxation 500 300 Dividends paid Required: Your client is considering an investment in the ordinary shares of either of the above companies and would like you to write a report advising which of the two would make the better investment. Your report should include the following: The calculation of a selection of TEN ratios for each company which will help assess the profitability, asset management, short-term solvency and long term financial health of the companies. (Please do not calculate any more than 10) (20 marks) (i) An evaluation of the ratios you have calculated. (20 marks) An identification and discussion of two other types of information which would be helpful in making an investment decision (4 marks) A brief discussion of some of the limitations of (iv) ratio analysis (6 marks) QuestionI The summarised financial statements of Jupiter ple and Juno ple for the year ended 30 June 2018 are set out below. Both companies operate in the retail sector tm Ficial Ptin t 30 Jane 2 er p ple NoCarre Aets Popetyplant & opuipment Intanghle ats 44c 354 4814 Carrest Assets Ivcntories Trade Racenables S12 125 272 Hanka 1212 Carret Lish Trade Payabl Bank Ovedraf 714 Net Currest Asset Tetal Ausets ss carrent libis Non-Carret Lisbilitis Long Tem Loa 5312 Net Assets 272 Equity Ondinary Share Capitl Retined Eaings Total Eqsity Shae 2000 3272 aat of Pr&Los fer the yar ended 30 June 2 Sales Reven Cost of Sales s90 4420 os Pro Operating Expeses Operating Pof ntnt Payable Po beoe aion ation Profa aer ta ns 200 25 578 Divideds paid Required: Your client is considering an investment in the ordinary shares of either of the above companies and would like you to write a report advising which of the two would make the better investment. Your report should include the following: o The calculation of a selection of TEN ratios for each company which will help assess the profitability, asset management, short-term solvency and long term financial health of the companies. (Please do not calculate any more than 10). (20 marks) An evaluation of the ratios you have calculated. (20 marks) An identification and discussion of two other types of information which would be helpful in making an investment decision. (4 marks) (iv) A brief discussion of some of the limitations of ratio analysis (6 marks) Question The summarised financial statements of Jupiter plc and Juno ple for the year ended 30 June 2018 are set out below. Both companies operate in the retail sector Jupiter ple 000s Statement of Financial Position as at 30 June 2018 Juno ple o00s Non-Current Assets Property. plant & equipment Intangible assets 8296 4460 1460 354 9756 4814 Current Assets Inventories 1750) 812 128 Trade Receivables 450 Bank 272 1212 2200 Current Liabilities Trade Payables Bank Overdraft 962 714 306 1268 714 Net Current Assets 932 498 Total Assets less current liabilities Non-Current Liabilities 10688 5312 Long Term Loans Net Assets 5200 2040 3272 5488 Equity Ordinary Share Capital (E1 Shares) Retained Earnings Total Equity 2000 3488 1000 2272 3272 5488 Statement of Profit & Loss for the year ended 30 June 20188 Sales Revenue 8600 5910 4420 3700 Cost of Sales Gross Profit Operating Expenses Operating Profit Interest Payable Profit before taxation 4900 1490 1842 494 3058 996 500 200 2558 796 220 520 2038 taxation 576 Profit after taxation 500 300 Dividends paid Required: Your client is considering an investment in the ordinary shares of either of the above companies and would like you to write a report advising which of the two would make the better investment. Your report should include the following: The calculation of a selection of TEN ratios for each company which will help assess the profitability, asset management, short-term solvency and long term financial health of the companies. (Please do not calculate any more than 10) (20 marks) (i) An evaluation of the ratios you have calculated. (20 marks) An identification and discussion of two other types of information which would be helpful in making an investment decision (4 marks) A brief discussion of some of the limitations of (iv) ratio analysis (6 marks)
