Part 4: UNDERSTANDING THE FINANCIAL STATEMENTS OF BUSINESS CUSTOMERS (10 MARKS)

You are provided with the following financial ratios of Rob Unlimited:

Return on assets: = 61.666666%

Gross profit ratio: = 30%

Operating margin: = 12.333333%

Net income margin: = 10.666667%

Turnover ratio of fixed assets:= 15 times

Turnover ratio of current assets:= 7.5 times

Current ratio:= 3:1

Asked: Use the information from the ratios to complete the statement of financial position and statement of comprehensive income for Rob Unlimited.

Statement of financial position as at 28 February 20xx

Shareholder Interest

Ordinary share capital$ 500,000

General reserves$_______

Non-Current Liabilities

Long term loan $ 600,000

Current Liabilities

Trade creditors$ 200,000

Other short term loans$_______

Total$

Non-current assets

Vehicles and equipment$_______

Current assets

Cash$ 150,000

Debtors$_______

Stock $600,000

Total$________