Assuming Anne's competitor's ratio averages are as stated above for month October of years 2019, 2020 and 2021: Analyse her performance with reference to the ratios of October 2021 calculated in comparison to those of her competitor. Also, briefly explain the impact of Covid -19 outbreak on the average ratios (Maximum of 500 words).

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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PART B
a) According to the information available in Income and Financial position statements in Part A, calculate
the following ratios for Anne's business for October 2021
Competitors Average
Accounts receivable Accounts
payable
рayment
period
27 Days
12Days
Net profit
margin
Gross
Current Acid test
collection period
profit
margin
ratio
ratio
16 Days
28 Days
Year 2019
0.32
0.55
2.7
1.34
Year 2020
0.28
0.56
2.6
1.32
Page | 13
Year 2021
0.02
0.08
2.8
1.38
26 Days
17 Days
b. Assuming Anne's competitor's ratio averages are as stated above for month October of years 2019,
2020 and 2021: Analyse her performance with reference to the ratios of October 2021 calculated in
comparison to those of her competitor. Also, briefly explain the impact of Covid -19 outbreak on the
average ratios (Maximum of 500 words).
Transcribed Image Text:PART B a) According to the information available in Income and Financial position statements in Part A, calculate the following ratios for Anne's business for October 2021 Competitors Average Accounts receivable Accounts payable рayment period 27 Days 12Days Net profit margin Gross Current Acid test collection period profit margin ratio ratio 16 Days 28 Days Year 2019 0.32 0.55 2.7 1.34 Year 2020 0.28 0.56 2.6 1.32 Page | 13 Year 2021 0.02 0.08 2.8 1.38 26 Days 17 Days b. Assuming Anne's competitor's ratio averages are as stated above for month October of years 2019, 2020 and 2021: Analyse her performance with reference to the ratios of October 2021 calculated in comparison to those of her competitor. Also, briefly explain the impact of Covid -19 outbreak on the average ratios (Maximum of 500 words).
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