Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The following are key extracts from the financial statements and market data of King's Motors PLC and its competitor LSE Motors PLC for financial years

The following are key extracts from the financial statements and market data of King's Motors PLC and its competitor LSE Motors PLC for financial years ending 31 of December 2020 and 2021: King's Motors PLC 2020 2021 Revenue Gross Profit Operating Profit Interest Expense Profit for The Year 26,000,000 132,000,000 15,000,000 80,000,000 (35,000,000) 12,000,000 (2,000,000) (8,000,000) (37,000,000) 4,000,000 LSE Motors PLC 2020 2021 E Revenue Gross Profit 900,000,000 950,000,000 300,000,000 320,000,000 Trade Receivables Inventories Cash 3,000,000 5,000,000 19,000,000 12,000,000 36,000,000 60,000,000 Trade Payable 5,000,000 18,000,000 Long term Loan 4,000,000 35,000,000 Share Capital (100) 5,000,000 25,000,000 Retained Earnings 7,000,000 11,000,000 Dividends (Total Payout) Share Price (per share) Cash from operations 0 0 20 2,000,000 100 6,000,000 Year 25,000,000 30,000,000 80,000,000 90,000,000 50,000,000 60,000,000 120,000,000 150,000,000 250,000,000 400,000,000 250,000,000 300,000,000 200,000,000 285,000,000 30,000,000 670 (35,000,000) (50,000,000) a) Discuss three financial ratios you might consider if you were a supplier to King's Motors Ltd and they asked for 10,000,000 of purchases on credit in 2021 Please ensure to justify your chocon ratine and state Operating Profit Interest Expense Profit for The Year 120,000,000 160,000,000 (20,000,000) (30,000,000) 100,000,000 130,000,000 Trade Receivables Inventories Cash Trade Payable Long term Loan Share Capital (E1) Retained Earnings Dividends (Total Payout) Share Price (per share) Cash from operations 45,000,000 650 BED + 75%

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Cima Official Learning System Fundamentals Of Business Mathematics

Authors: Graham Eaton

4th Edition

1856177831, 978-1856177832

More Books

Students also viewed these Accounting questions