Based on the financial statements, evaluate the company’s financial stability in 2020 as compared to 2019 based on the current ratio, quick ratio and debt ratio. I STATEMENTS OF FINANCIAL POSITIONAs at 30 September 2020NOTEGROUPCOMPANY2020201920202019$ASSETSCurrent assetsCash and bank balances412,921,78015,792,07111,658,58315,231,736Trade and other receivables51,153,2131,584,079718,325387,166Amount due from subsidiaries132,778,8653,912,153Inventories479,518516,64060,61769,650Grant receivables19380,086283,218Other assets10136,642482,027Total current assets15,071,23918,374,81715,499,60819,600,705Non-current assetsOther receivables193,8571,065,163489,040Goodwill7Intangible assets8564,971633,451Plant and equipment3,063,4552,535,3341,188,392541,294Right-of-use assets124,756,0051,425,503Other assets1044,171Investment in subsidiaries11100,105100,105Total non-current assets8,578,2884,278,1192,714,0001,130,439Total assets23,649,52722,652,93618,213,60820,731,144 NOTEGROUPCOMPANY2020201920202019$2$LIABILITIES AND EQUITYCurrent liabilitiesLoans and borrowings – current portion141,465,5281,465,528Trade and other payables155,216,4274,603,2572,527,2573,001,685Contract liabilities16271,153626,733Lease liabilities123,264,7571,523,439Amount due to holding company1310,04744,0215,26444,021Provisions17265,341170,223223,897133,274Deferred grant income19556,181388,628Income tax payable17,09317,093Total current liabilities11,066,5275,461,3276,134,0133,178,980Non-current liabilitiesProvisions17150,808271,40338,808161,327Lease liabilities122,811,945302,156Loans and borrowings142,812,5002,812,500Total non-current liabilities5,775,253271,4033,153,464161,327EquityShare capital1825,181,00525,181,00525,181,00525,181,005Capital reserve20(695,938)(695,938)2,063,7512,063,751Accumulated losses(17,661,580)(7,549,435)(18,318,625)(9,853,919)Translation reserve20(15,740)(15,426)Total equity6,807,74716,920,2068,926,53117,390,837Total liabilities and equity23,649,52722,652,93618,213,60820,731,144

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Description: Based on the financial statements, evaluate the company’s financial stability in 2020 as compared to 2019 based on the current ratio, quick ratio and debt ratio. I STATEMENTS OF FINANCIAL POSITIONAs at 30 September 2020NOTEGROUPCOMPANY202020192020201

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Accounting

Based on the financial statements, evaluate the company’s financial stability in 2020 as compared to 2019 based on the current ratio, quick ratio and debt ratio.

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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