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SECTION A-COMPULSORY. YOU MUST QUESTION COMPULSORY) The following information was extracted from the financial statements of love Accounting plc on 31 December 2018 & 2019

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SECTION A-COMPULSORY. YOU MUST QUESTION COMPULSORY) The following information was extracted from the financial statements of love Accounting plc on 31 December 2018 & 2019 Income Statement 2019 15001000 Gross proft 50.0001 80.000 Operating profit Interest expense Profit for the year 06 220.000 Statement of financial position 500.000 Total current 300.000 300.000 Ordinary share capital of Rated Coming Non-current librities Current liabilities 70.000 Acorusdempen Total current i Total Equity and s abilities Question continues on the next page WOOD Question continued from previous page] Required: .. Calculate the following financilios for love Accounting ple' for both 2018 Note Prepare a Tobie showing a computations for each year - Round up numbers to mamum of 2 decimal places O Gross profit margin Operating profit margin Current OM Acid test ratio Inventories tumover period (M) Settlement period for recibles Caring Earrings per share (LPS) (12 Marks SECTION A-COMPULSORY. You MUST answer the question in section QUESTION 1 COMPULSORY) The following information was extracted from the financial statements of Accounting plc on 31 December 2018 & 2019: Income Statement love 1400.000) TR00.000 Sales Revenue Cost of sales Gross profit Operating expense Operating profit 160,000) 80,000) 220.000 Profit for the year Statement of financial position Cash Total current assets 270.000 300.000 Equity Ordinary share capital of 1 fully Reted emings Reserves Total Equity 100.000 150.000 Long term loan 30.000 Total current liabilities Total Equity and Liabides Question continues on the next page! du Code 3 Question 1 continued from previous page] Required love Accounting ple" for both 2018 a. Calculate the following financial ratios for and 2019 Note: Prepare a Table showing all computations for each year - Round up numbers to maximum of 2 decimal places Operating profit margin O Acident ratio (v) inventore turnover period Setement period for receivables (vi) Gearing ratio (V) Earnings per share (EPS) (12 Marks)

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