Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Use the information provided below to answer the following questions: 2.1 Comment on the financial result of the company. (2 marks) 2.2 Is the company
Use the information provided below to answer the following questions: 2.1 Comment on the financial result of the company. (2 marks) 2.2 Is the company efficient in its collection of debts arising from credit sales? Motivate your answer by using an appropriate ratio. (3 marks) 2.3 Will creditors alow credit under distress business conditions to Siverstone Limited? Explain your answer with the relevant ratio. (3 marks) 2.4 Would the shareholders be happy with the profitability of the company? Use an appropriate ratio to motivate your answer. (4 marks) 2.5 Calculate the ratio for 2021 that reflects how the stock market is judging the company's eamings performance and prospects. (4 marks) 2.6 Explain the impact on the cost of sales in the statement of comprehensive income if LIFO rather than FIFO method of valuing imventories is used during periods of rising prices. (4 marks) INFOPMATION Extacts of the statement of comprehersive income and statement of financial posifon of Siversture Limied for 2021 and 2020 are as folows Statement of Comprehensive lncome for the year ended 31 December. Note: - All purchases and sales of invertories are an cobct. - The weds terms to debtors are 30 days. - There were 2000000 shares in issue during 2021 - The market price per share was R550 on 31 Decentber 2021
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started