Answered step by step
Verified Expert Solution
Question
1 Approved Answer
please do it in 50 minutes please urgently... I'll give you up thumb definitely Question (4) The condensed financial statements for Cairo Plc. are as
please do it in 50 minutes please urgently... I'll give you up thumb definitely
Question (4) The condensed financial statements for Cairo Plc. are as follows: Cairo Plc. Statement of profit or loss for the year ended 31 August 2020 Revenues Cost of goods sold Gross profit Operating expenses Profit before interest and tax Tax Profit after tax 1,400,000 840,000 560,000 472,000 88,000 8,000 80,000 Cairo Plc. Statement of Financial Position as 31 August 2020 2019 Cash at Bank 50,000 40,000 Receivables 100,000 90,000 Inventory 150,000 140,000 Other current assets 180,000 170,000 Non-current assets 800,000 740,000 1,280,000 1,180,000 Payables 150,000 160,000 Long-term liabilities 160,000 170,000 Equity 970,000 850,000 1,280,000 1,180,000 Required: (a) Calculate the following ratios as at August 2020 only: a. Asset turnover b. Net profit margin ROCE d. Acid test ratio Cash cycle f. Return on shareholders' equity g. Debt to asset ratio (10 marks) (b) Prepare a report analysing Cairo Ple's financial ratios and comment on its performance considering the industry average listed below: Industry average Financial ratio Asset tumover 1.8 times Net profit margin 5.25% I Acid test ratio 1.5 Cash cycle 15 days Return on shareholders' equity 11% Debt to asset ratio 28% (7 marks) (Total: 17 marks) c. eStep by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started