The comprehensive Financial Statements of Nestle Co. Ltd is presented as follows: Balance Sheet as at 31st December, 2015

Year

Fixed Assets

Property, Plant and Equipment

Current Assets

Inventories 40,520

2015 2014 Ghc Ghc

71,749 30,884

Trade and Other Receivables Bank and Cash Balances

Current Liabilities

Trade and Other Payables

Bank Overdraft

Tax 173 Dividend 6,422

24,748 6,190 10,806 41,744

27,602 806 2,559 4,286 35,253

6,491

2,870

3,889

47, 279

44,632 8,866

Net Current (Liabilities) / Assets

60,093

(12,814)

2

Net Assets

Represented By

Stated Capital

Income Surplus Account Shareholders Fund

Profit and Loss Account for the year ended 31st December, 2015 Year

Turnover

Cost of Sales

Gross Profit

Selling, General and Administrative Expenses

Operating Profit

Other Income

Net Profit before Taxation and Levy

Levy

Net Profit before Taxation

Taxation

58, 935

6,000 52,935 58, 935

2015

Ghc

255,369

(142,416)

112,953

(75,740)

37,013

1,669

38,682

(967)

37,715

(10,220)

27,495

37,375

6,000 31,375

37,375

2014

Ghc

168,867

(85,970)

82,897

(54,411)

28,486

542

29,028

(726)

28,302

(9,032)

19,270

Net Profit after Taxation transferred to Income Surplus Account Income Surplus Account for the year ended 31st December, 2015

Balance as at January 1 Net Profit for the year Income Surplus Dividend

Balance as at December 31

Additional information given include:

1. Number of shares outstanding is 197

2. Price per Share is Ghc 20,000

3. There is 365 days in the year.

31,375 16,062 27,495 19,270 58,870 35,332 (5,935) (3,957) 52,935 31,375

Required: Compute and analyze with implications the following financial ratios:

a. Liquidity ratios-

i. Current Ratio

ii. Quick Ratio

3

b. Activity ratios-

i. Stock Turnover in Days Ratio

ii. Average Collection Period Ratio

c. Profitability Ratio-

i. Return on Invested Capital Ratio

ii. Return on Equity Ratio

d. Gearing Ratio

i. Debt Ratio (Debt-to-Assets)

ii. Equity Multiplier Ratio

e. Shareholders Ratio-

i. Earnings Per Share Ratio

ii. Dividend Payout Ratio