Question 3 : Comparative financial statement data of Tardis Plc follow: Tardis Plc Comparative Income Statement For the year ended 30 June 2020

2020 2019 Net Sales 667,000 599,000 Cost of Goods Sold 378,000 283,000 Gross Profit 289,000 316,000 Operating Expenses 129,000 147,000 Interest Expense 57,000 41,000 Total Expenses 186,000 188,000 Profit before income tax 103,000 128,000 Income Tax expense 34,000 53,000 Net Profit 69,000 75,000 Tardis Plc Comparative Balance Sheet As at 30 June 2020 2020 2019 2018 Current Assets: Cash 37,000 40,000 Accounts Receivable 208,000 151,000 183,000 Inventories 352,000 286,000 184,000 Prepaid Expenses 5,000 20,000 Total Current Assets 602,000 497,000 Property Plant and Equipment 287,000 276,000 Total Assets 889,000 773,000 707,000 Total Current Liabilities 286,000 267,000 Long term liabilities 245,000 235,000 Total Liabilities 531,000 502,000 Preference share capital 50,000 50,000 Ordinary share capital 308,000 221,000 148,000 Total liabilities and shareholders Equity 889,000 773,000 Other information:

1. Market price of Tardis Plc ordinary shares: $36.75 at 30 June 2020, and $50.50 at 30 June 2019

2. Ordinary shares outstanding 15,000 during 2020 and 14,000 during 2019

3. All sales of credit Required:

1. Calculate the following ratios for 2020 and 2019 (6 marks) (a) Current ratio (b) Inventory turnover (c) Times interest earned (d) Return on Ordinary equity (e) Earnings per share of ordinary shares. (f) Price /Earnings ratio.

2. Comment on the companys performance and decide whether Tardis financial position improved or deteriorated during 2020 and the investment attractiveness of its ordinary shares.