Opening stock 53,000 410,000 Less Closing stock Sean Paul is a trader in vinyl receeds The firm has provided the following dats for 2015: Condensed Income Statement Net Sales Cast of Goods Sald Add Net purchases Condensed Balance Sheet 1,600,500 Non Current Assets Current Assets Stock Debtors 2,400,000 74,500 220,000 Bank 100,500 Gross Profit 04,500) 88,500) 1,212,000 Recevables 32,000 427,000 Total Assets Net Operating (515,500) Expenses Capital & Reserves PRIT 696,500 Ordinary Shares $1.00 500,000 Les interest 40,000 10% Preference Shar 450,000 $1 Profit before tas 656,500 Re 550,000 Less tak 200,000) Retained Profits PAT 456,500 Non Current Liability 511 500 2,011,500 Retained Earing bid 300,000 10% Low 400,000 Total Profit for the Year 756,500 Les Trader to (120,000) Current Liabilities Reserves Less Destends Creditors 250,000 Ovlinary Preference Retained Earning e'd Market Price per Share Q Search (60,000) Accounts Payable 145300 (45,000) (225,000) Total Equity & 195,500 2327,000 Liabilines 531.500 3.75 ET e 11 TOSAM 3/15/2023 26 + B I UA GO 3 The following comparative ratios relate to i Sean Paul's results in the preceding two years of 2013 and 2014 Shaggy, a main competitor who is also a performer and a promoter The average performance of the music industry SHAGGY INDUSTRY SEAN PAUL 2013 2014 2015 Dividend Cover 5.45 times 5.00 times Debtors Turnover Period 20.58 days 32.66 days Current Ratio 289:1 2.50 1 Net Profit Margin 22.34% 25.50% Creditors Turnover 1.04 times 1.55 times Total Assets to Total Liabilities 4.58:1 4.01 1 Earnings Per Share $0.68 5.075 Gearing Ratio 32.11% 35.50% 26.50% 25.50% ROSE Times Interest Earned 16.45 times 15.25 time Required XEE EN Required a. Compute the corresponding ratios for Sean Paul for 2015 b. Comment briefly on the performance of Sean Paul in the areas of liquidity, solvency, profitability, asset management, and market investment, by way of L A Trend Analysis A Competitor Analysis What non-financial data would you find useful performance of Sean Paul? in your assessment of the d. State four (4) limitations to the use of accounting ratios 1.600,500 53.000 410,000 Less Closing stock 2gPWHCtcnFMT?projector=1&messagePart... A Sean Paul is a trader in vinyl records The firm has provided the following data for 2015: Condensed Income Statement Net Sales Cost of Goods Sold Opening stock Add Net purchases 20 Condensed Balance Sheet Non Current Assets 2.400.000 Current Assets Stock 74,500 Debtors 220,000 Bank 100,500 (74,500) (388,500) Receivables 32,000 Gross Profit Net Operating 1,212,000 Total Assets 427,000 2,827,000 (515,500) Expenses Capital & Reserves PBIT 696,500 Ordinary Shares @ $1.00 500,000 Less interest -40.000 10% Preference Shares @ 450.000 $1 Profit before tax 656,500 Reserves 550,000 Less tax (200,000) Retained Profits 531,500 2,031,500 /u/0/?pli=1#search/sas/FMfcgzGrcjWwWWrJggjnZgPWHCtcnFMT?projector=1&messageParti... A PAT Retained Eaming b/d Total Profit for the Year Less Transfer to Reserves Less Dividends 456,500 300,000 756,500 (120.000) Non-Current Liability 10% Loan Current Liabilities Creditors 400,000 250,000 Ordinary Preference (60,000) (45,000) (225,000) Accounts Payable Total Equity & Liabilities 145,500 395,500 2,827,000 Retained Earning c/d 531,500 Market Price per 3.75 Share The following comparative ratios relate to 11. Sean Paul's results in the preceding two years of 2013 and 2014 Shaggy, a main competitor who is also a performer and a promoter The average performance of the music industry /0/?pli=1#search/sas/FMfcgzGrcjWwVWrJggjnZgPWHCtcnFMT?projector=1&messagePart... SHAGGY INDUSTRY SEAN PAUL 2013 2014 2015 Dividend Cover 5.45 times 5.00 times Debtors Turnover Period 20. 58 days 32.66 days Current Ratio 2.89 1 2.50: 1 Net Profit Margin 22.34% 25.50% Creditors Turnover 1.04 times 1.55 times Total Assets to Total Liabilities 4.58: 1 4.01 : 1 Earnings Per Share Gearing Ratio $0.68 $.075 32.11% 35.50% ROSE 26.50% 25.50% Times Interest Earned 16.45 times 15.25 times Required a. Compute the corresponding ratios for Sean Paul for 2015 b. Comment briefly on the performance of Sean Paul in the areas of liquidity, solvency, profitability, asset management, and market investment, by way of i. A Trend Analysis ii. A Competitor Analysis c. What non-financial data would you find useful in your assessment of the performance of Sean Paul? d. State four (4) limitations to the use of accounting ratios