Based on GROUP's current ratio, quick ratio and debt ratio, evaluate the company’s financial stability in 2020 as compared to 2019. Provide your comment as well to support the answer.
Based on GROUP's current ratio, quick ratio and debt ratio, evaluate the company’s financial stability in 2020 as compared to 2019. Provide your comment as well to support the answer.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Based on GROUP's current ratio, quick ratio and debt ratio, evaluate the company’s financial stability in 2020 as compared to 2019. Provide your comment as well to support the answer.
Transcribed Image Text:NOTE
GROUP
COMPANY
2020
2019
2020
2019
$
2$
LIABILITIES AND EQUITY
Current liabilities
Loans and borrowings – current portion
14
1,465,528
1,465,528
Trade and other payables
15
5,216,427
4,603,257
2,527,257
3,001,685
Contract liabilities
16
271,153
626,733
Lease liabilities
12
3,264,757
1,523,439
Amount due to holding company
13
10,047
44,021
5,264
44,021
Provisions
17
265,341
170,223
223,897
133,274
Deferred grant income
19
556,181
388,628
Income tax payable
17,093
17,093
Total current liabilities
11,066,527
5,461,327
6,134,013
3,178,980
Non-current liabilities
Provisions
17
150,808
271,403
38,808
161,327
Lease liabilities
12
2,811,945
302,156
Loans and borrowings
14
2,812,500
2,812,500
Total non-current liabilities
5,775,253
271,403
3,153,464
161,327
Equity
Share capital
18
25,181,005
25,181,005
25,181,005
25,181,005
Capital reserve
20
(695,938)
(695,938)
2,063,751
2,063,751
Accumulated losses
(17,661,580)
(7,549,435)
(18,318,625)
(9,853,919)
Translation reserve
20
(15,740)
(15,426)
Total equity
6,807,747
16,920,206
8,926,531
17,390,837
Total liabilities and equity
23,649,527
22,652,936
18,213,608
20,731,144
Transcribed Image Text:I STATEMENTS OF FINANCIAL POSITION
As at 30 September 2020
NOTE
GROUP
COMPANY
2020
2019
2020
2019
$
ASSETS
Current assets
Cash and bank balances
4
12,921,780
15,792,071
11,658,583
15,231,736
Trade and other receivables
5
1,153,213
1,584,079
718,325
387,166
Amount due from subsidiaries
13
2,778,865
3,912,153
Inventories
479,518
516,640
60,617
69,650
Grant receivables
19
380,086
283,218
Other assets
10
136,642
482,027
Total current assets
15,071,239
18,374,817
15,499,608
19,600,705
Non-current assets
Other receivables
193,857
1,065,163
489,040
Goodwill
7
Intangible assets
8
564,971
633,451
Plant and equipment
3,063,455
2,535,334
1,188,392
541,294
Right-of-use assets
12
4,756,005
1,425,503
Other assets
10
44,171
Investment in subsidiaries
11
100,105
100,105
Total non-current assets
8,578,288
4,278,119
2,714,000
1,130,439
Total assets
23,649,527
22,652,936
18,213,608
20,731,144
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