Question
Total Liabilities 1,751,570 92.96 1,319,908 92.81 Total Equity and Liabilities 1,884,092 100% 1,422,019 100% Retained profits 39,999 2.12 46,985 3.30 84,982 4.51 101,916 7.16 Non-controlling
Total Liabilities | 1,751,570 | 92.96 | 1,319,908 | 92.81 |
Total Equity and Liabilities | 1,884,092 | 100% | 1,422,019 | 100% |
Retained profits | 39,999 | 2.12 | 46,985 | 3.30 |
84,982 | 4.51 | 101,916 | 7.16 | |
Non-controlling interest | 47,540 | 2.52 | 195 | 0.01 |
Total Equity | 132,522 | 7.03 | 102,111 | 7.18 |
Current Assets | ||||
Inventories | 302,187 | 16.03 | 231,330 | 16.26 |
Sundry Receivables | 54,867 | 2.91 | 75,900 | 5.33 |
Cash and Bank Balance | 175,851 | 9.33 | 96,207 | 6.76 |
532,905 | 28.28 | 403,437 | 28.37 | |
Total Assets | 1,884,092 | 100% | 1,422,019 | 100% |
Part 2
Vertical Analysis for Comprehensive Income (Common Size Statement)
Particulars | 2020 | % | 2019 | % |
Revenue | 677,123 | 100% | 594,160 | 100% |
Cost of Sales | (480,526) | 70.96 | (404,063) | 68.00 |
Gross Profit | 196,597 | 29.03 | 190,097 | 31.99 |
Other Operating Income | 38,160 | 5.63 | 33,278 | 5.60 |
Selling and distribution expenses | (159,842) | 23.60 | (162,555) | 27.35 |
Administration and other operating expenses | (35,658) | 5.26 | (26,929) | 4.53 |
Profit from operations | 39,257 | 5.79 | 33,891 | 5.70 |
Finance costs | (14,573) | 2.15 | (10,786) | 1.81 |
Share of results of an associate | (316) | 0.04 | -- | -- |
Profit before tax | 24,368 | 3.59 | 23,105 | 3.88 |
Income tax expense | (8,578) | 1.26 | (6,130) | 1.03 |
Profit after tax | 15,790 | 2.33 | 16,975 | 2.85 |
Part 3
a. Current Ratio = Current assets/ Current Liabilities
2020: 532,905/852,198 = 0.62
b. Acid-Test Ratio = Liquid Assets/Current Liabilities
Liquid assets = Current Assets Inventory
2020: 532,905-302,187/852,198 = 0.27
c. Accounts Receivables ratio = Net credit Sales/Average Accounts Receivables
2020: 677,123/6,227,000 = 0.10
d. Inventory Turnover ratio = Cost of Goods Sold/Average Inventory
2020: 480,526/76,218,000 = 0.0063
question requirment
state your opinion from the above finding. your explanation need to include but not limited to these point:
- the company's capability in paying bills and short term debts
- How fast the company paying their bills
- how fast the account receivable turn into cash
- how fast the company able to sell their products
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