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Tenderland Plc. has been trading in merchandise for several years in Garden City. The information below relates to the extracts from the financial statements for

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Tenderland Plc. has been trading in merchandise for several years in Garden City. The information below relates to the extracts from the financial statements for the past two years. Statement of Profit or loss and other Comprehensive income for the year ended September 30. Revenue Gross Profit Administrative expenses Finance cost 10% Loan Note Interest 2016 ' Million 100.000 45,000 22,500 2015 'Million 160.000 70,000 27,500 1250 Operating profit before Tax Less: Taxation for the year Less: Operating Profit for the Year Dividends paid to Equity holders 1250 23750 21,250 8,000 13.250 6,050 28.750 41,250 16,000 25,250 8,550 Extract of statement of Financial Position as of September 30 2015 2016 ' Million ' Million Assets Non-Current Assets at Cost Less Accumulated Depreciation Carrying Amount 50,000 10,000 40.000 70,000 12.000 57,500 Current Assets Inventory Trade Receivables Bank Balance 32,500 20,000 4.000 56,500 96.500 7,500 5,000 37,500 50,000 107.500 Total Assets Equity and Liabilities Ordinary Share Capital @ 50pence each Retained earnings 10% Loan notes 10% Redeemable Preference Shares 23,000 17,200 12,500 23,000 10,000 12,500 2.000 47,500 52,700 Current Liabilities Trade Payables Taxation Bank Overdrafts 7,500 24,000 12.300 43.800 96,500 10,750 16,000 33.250 60.000 107,500 Total Equity and Liabilities The Board of Directors were worried over the dwindling financial performance and precarious financial position of the Company. The company products were ageing; the economic depression biting harder as a result of the fluctuating exchange rate due to Brexit. The Company imports 60% of the goods sold in Garden City. The fluctuating exchange rate had affected the company's importation. Consequently, the revenue of the Company dropped significantly. You are required to: A) Calculate the following ratios for the year ended September 30, 2015 and 2016 in Columnar form: i) Return on Capital Employed ii) Total Assets Turnover iii) Quick ratio iv) Debt Equity Ratio v) Fixed Interest cover vi) Earnings Yield vii) Price Earnings Ratio Vill) Dividend Yield (15 Marks) B). Write a brief and formal technical report to the Board of Directors to assess the performance, liquidity and stability of company using only: 1) Return on Capital Employed ii) Total Assets Turnover iii) Quick Ratio iv) Fixed Interest Cover V) Debt Equity Ratio (10 Marks)

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