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You are presented with the financials of Marketing Service CC for the years ending 31 December 2008 and 2009. Before you seek advice from your

  1. You are presented with the financials of Marketing Service CC for the years ending 31 December 2008 and 2009. Before you seek advice from your investment advisor, you as an investor would like to objectively analyse the financials. Based on the financial statements of Marketing Service CC for the years ended 31 December 2008 and 2009; you are required to calculate the following ratios:
    1. Current Ratio (industry norm 2:1) (2)
    2. Stock turnover ratio (industry norm 2.5 times) (2)

Statement of financial position (balance sheet) of Marketing Service CC

as at 31 December 2008 and 31 December 2009

2008

2009

Non-current assets

85 000

58 010

Current assets

95 000

95 000

Stock

72 500

40 000

Debtors

22 500

35 000

Bank

0

20 000

TOTAL ASSETS

180 000

153 010

Member's Interest

70 000

55 000

Distributable reserves

40 000

15 010

Total member's interest

110 000

70 010

Long-term liability

30 000

25 000

Current Liabilities

Creditors

40 000

58 000

EQUITIES AND LIABILITIES

180 000

153 010

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