Question
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:
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: Income before interest and tax/total assets x 100/1 = 61.666666%
Gross profit ratio: Gross profit/Principal revenue x 100/1 = 30%
Operating margin Operating income/principal revenue x 100/1 = 12.333333%
Net income margin: Net income before taxation/ Principal revenue x 100/1 = 10.666667%
Turnover ratio of fixed assets: Principal revenue / fixed assets = 15 times
Turnover ratio of current assets: principal revenue/ current assets = 7.5 times
Current ratio: current assets/current liabilities = 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 $150000
Debtors $_______
stock $600000
Total $________
Statement of comprehensive income for the year ended 28 February 20xx
Principle revenue $9000000
Inventory beginning of year $900000
Plus purchase $______
Less Inventory end of year $600000
Cost of goods sold $6300000
Gross income $_______
Operating expenses $_______
Depreciation $90000
Net income before interest and taxation $1110000
Interest payments $_______
Net income before taxation $_______
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