Q5.

Alexis LtdIncome Statementfor the year ended 30 June 20212022 $,000$,000Revenue3,2403,880Interest income1020Total income3,2503,900Expenses: Cost of sales-1,745-2,270Depreciation - PPE-50-50Interest expense-45-50Salaries-160-180Total expenses-2,000-2,550Earnings before tax1,2501,350Tax-450-480Profit800870 Alexis LtdBalance Sheet as at 30 June 20212022 $,000$,000Cash 140135Accounts Receivable240275Inventory300410Total Current asset680820Property Plant and Equipment800880Total Asset1,4801,700Accounts Payable260350Notes payable070Total Current Liabilities260420Long-term bank loan600400Total Liabilities 860820Net Asset620880Share capital500500Retained earnings 120380Total shareholders equity620880

1. Using ratio analysis, comment on the liquidity, management efficiency and profitability of Alexis Ltd.

Note: Net Operating Working Capital (NOWC) = OCA - OCL NOWC excludes cash & marketable securities and interest-bearing liabilities Net Long Term Assets = LT Assets - LT Liabilities Net Debt = interest bearing debt - cash Net Interest Expense After Tax = (Interest Expense - Interest Income) x (1-tax) NOPAT = Net operating income + net interest expense after tax

1. Using the income statement and balance sheet of Alexis Ltd, and the formulas provided you are required to;
2. prepare a condensed financial statement as part of evaluating the business of Alexis Ltd.