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QUESTION 1 The financial information provided below is for two companies, which operates in similar retail fields, using the same business and accounting policies STATEMENT
QUESTION 1
The financial information provided below is for two companies, which operates in similar retail fields, using the same business and accounting policies
STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER, 2015
Stated Capital
Capital Surplus
Income Surplus
Shareholders Interest
10% Debenture
Total Capital and Long Term Debt Represented by
Fixed Assets Current Assets
Stock
Trade Debtors Cash
GODSON LTD Million
7,000 1,300 3,700 12,000
1,100
13,100
11,260
2,440 2,480 120
NYAMEBA LTD million
9,400 700 5,740
15,840 1,280 17,120
15,700
1,940 3,320 160
1
Current Liabilities Bank Overdraft
Trade Creditors Expense Creditors
Net Current Assets
Capital Employed
420 1,940 840 3,200 1,840
13,100
400 2,640 960 4,000 1,420 17,120
5,040
5,420
COMPREHENSIVE INCOME STATEMENT FOR THE YEAR ENDED 31 DECEMBER 2015
GODSON LTD
million Sales 14,940
NYAMEBA LTD million
11,400 7,540 3,860
1,200 580 160 1,940 1,920 900 1,020 740 280
Cost of sales Gross Profit Less Expenses
11,360 3,580
1,280 620 180 2,080 1,500 Taxation 740 Net Profit after Tax 760 Dividends 480
Selling and Distribution Administration and General Financial
Net Profit before Tax
Retained Profit You are required to:
280
2
a) Calculate for each company ANY Ten (10) ratios which you consider to appropriate for analyzing the performance and the financial strengths of the two firms.
b) Explain and comment appropriately on each of the ratios you have calculated.
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