STATEMENTS OF FINANCIAL POSITION $($NESTLE $2022)$

Assets

Non$-$current assets

Property, plant and equipment $1,669,316$

Right$-$of$-$use assets $184,583$

Intangible assets $62,183$

Investments in subsidiaries $-$

Investment in an associate $6,288$

Deferred tax assets $24,140$

Trade and other receivables $8,283$

Total $1,954,793$

Current assets

Inventories $1,115,083$

Trade and other receivables $445,201$

Current tax assets $30,763$

Cash and bank balances $8,171$

Total $1,599,218$

Total assets $3,554,011$

Equity and liabilities

Equity attributable to owners of the parent

Share capital $267,500$

Reserves $(7,395)$

Retained earnings $366,211$

Total equity $626,316$

Current liabilities

Loans and borrowings $486,890$

Lease liabilities $27,496$

Trade and other payables $1,724,873$

Current tax liabilities $19,712$

Total $2,258,971$

Non$-$current liabilities

Loans and borrowings $300,000$

Lease liabilities $120,036$

Employee benefits $84,267$

Deferred tax liabilities $164,421$

Total $668,724$

Total liabilities $2,927,695$

Total equity and liabilities $3,554,011$

Calculation of relevant liquidity and asset management ratios

"Provide all the relevant liquidity and asset management ratios were computed correctly for Nestle company.

With detailed workings"

Current Ratio:

$2\mathrm{.}1\mathrm{.}1$ Net Working Capital

NWC $=$ Current Assets $$ Current Liabilities

$2\mathrm{.}1\mathrm{.}2$ Current ratio

Current ratio $=$ Current Assets $/$ Current Liabilities

$2\mathrm{.}1\mathrm{.}3$ Quick ratio

Quick ratio measures the ability of the company to pay its short$-$term loans quickly.

Quick ratio $=($Current assets $$ Inventory$)/$ Current Liabilities

Asset Management Ratio

$2\mathrm{.}2\mathrm{.}1$ Account receivable turnover

Account receivable turnover measures the ability of the company to collect debts from its customers

ART $=$ Credit sales $/$ Accounts receivable

$2\mathrm{.}2\mathrm{.}2$ Average collection period

Average collection period shows the average days taken by the company to collect the account receivable.

ACP $=360/$ ART

$2\mathrm{.}2\mathrm{.}3$ Inventory turnover

Inventory turnover measures the efficiency of inventory management

IVT$=$ Cost of goods sold $/$ Inventory

$2\mathrm{.}2\mathrm{.}4$ Average inventory sales period

Average inventory sales period shows the number of days taken to make one round of inventory sales

AISP $=360/$ IVT

$2\mathrm{.}2\mathrm{.}5$ Non$-$current asset turnover

Non$-$current asset turnover shows the efficiency of the company in using its non$-$current assets to generate sales.

NCAT $=$ Sales $/$ Net non$-$current assets

$2\mathrm{.}2\mathrm{.}6$ Total asset turnover

Total asset turnover shows the efficiency of the company in using all its assets to generate sales.

TAT $=$ Sales $/$ Total assets