Question
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
- 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:
- Current Ratio (industry norm 2:1) (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 |
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| 2008 |
| 2009 |
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Non-current assets |
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| 85 000 |
| 58 010 | |
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Current assets |
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| 95 000 |
| 95 000 | |
Stock |
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| 72 500 |
| 40 000 |
Debtors |
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| 22 500 |
| 35 000 |
Bank |
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| 0 |
| 20 000 |
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TOTAL ASSETS |
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| 180 000 |
| 153 010 | |
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Member's Interest |
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| 70 000 |
| 55 000 | |
Distributable reserves |
| 40 000 |
| 15 010 | ||
Total member's interest |
| 110 000 |
| 70 010 | ||
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Long-term liability |
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| 30 000 |
| 25 000 | |
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Current Liabilities |
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Creditors |
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| 40 000 |
| 58 000 |
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EQUITIES AND LIABILITIES |
| 180 000 |
| 153 010 |
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