Questions 1. Yippy and Co: Balance sheets as at 31 December 2015 2014 000 000 000 000 Non-current assets Land & buildings 940 762 Fixtures and fittings 125 128 1,065 890 Current assets Inventory 740 600 Receivables 420 490 Cash 1.240 1.147 Current liabilities Trade payables 230 440 Other 147 80 Company tax due 152 130 650 80 57 529 711 497 1,776 1,387 Net current assets Non-current assets + net current assets Long-term liabilities 10% Debentures 500 400 1.276 987 671 609 Capital and reserves 0.50 Ordinary shares Other reserves Retained profits 80 131 525 247 1.276 987 000 000 Income statements Yippy and Co. for years ended 31st December 2015 2014 000 000 Sales Less Cost of sales Opening inventory Purchases 5,459 4,481 600 482 4284 3.608 4,090 4,884 740 4,144 600 3.490 1.315 991 Less closing inventory Gross profit Wages and salaries Interest payable Other costs 512 460 52 48 174 132 738 640 577 351 152 130 Net profit before tax Company tax Net profit after tax Add retained profits b/forward 425 221 247 106 672 327 Dividends paid 147 BO Retained profit c/forward 525 247 All sales and purchases are made on credit. The market value of the shares of the company was 7 at 31st December 2015 and 5 at 31st December 2014. The issues of equity shares during 2015 was at the beginning of the year. Dividends of 6.6 pence per share were paid in 2014, and of 11 pence per share in 2015. a) Using six ratios, comment on the profitability (three ratios) and efficiency (three ratios) of the business. (15 marks)