Below is an incomplete Statement of Financial Position for a company at the end of 2020. ($’000) Current Assets Cash 6 Inventory 27 Prepayments 6 Non-Current Assets Property, Plant & Equipment 40 Accumulated Depreciation (4) ----- Total Assets ? Current Liabilities Suppliers Accounts Payable 12 Non-Current Liabilities Bank Loan ? ----- Total Liabilities 48 Equity Contributed Capital ? Retained Earnings 10 ----- Total Equity ? 1. Calculate the missing amounts for: i) Total Assets ii) Bank Loan iii) Contributed Capital iv) Total Equity 2. Calculate the Current ratio. 3. Calculate the Quick ratio. 4. Calculate the Equity ratio. 5. If the cost of goods sold for 2020 was $87,000 and the inventory purchases was $88,000. Calculate the total inventory on hand at the beginning of 2020. 6. Calculate the Inventory Turnover ratio for 2020. 7. Hence or otherwise, calculate the Inventory Days for 2020. 8. Comment on your calculated answers for parts 2), 3), & 7) A) Total current assets = cash +inventory+prepayment Total current assets = 6,000+27,000+6,000= 39,000 B) Total fixed assets = PPE- Accumulated depreciation Total fixed assets = 40,000-4,000= 36,000 (I) Total Assets = 39,000+36,000= 75,000 (II) Bank loan = Total liabilities - current liabilities Bank loan= 48,000-12,000 = 36,000 arrow_forward Step 2 (iii) Contributed capital Assets = Liabilities+ equity
Below is an incomplete
($’000)
Current Assets
Cash 6
Inventory 27
Prepayments 6
Non-Current Assets
Property, Plant & Equipment 40
-----
Total Assets ?
Current Liabilities
Suppliers Accounts Payable 12
Non-Current Liabilities
Bank Loan ?
-----
Total Liabilities 48
Equity
Contributed Capital ?
-----
Total Equity ?
1. Calculate the missing amounts for:
i) Total Assets
ii) Bank Loan
iii) Contributed Capital
iv) Total Equity
2. Calculate the
3. Calculate the Quick ratio.
4. Calculate the Equity ratio.
5. If the cost of goods sold for 2020 was $87,000 and the inventory purchases was $88,000. Calculate the total inventory on hand at the beginning of 2020.
6. Calculate the Inventory Turnover ratio for 2020.
7. Hence or otherwise, calculate the Inventory Days for 2020.
8. Comment on your calculated answers for parts 2), 3), & 7)
A) Total current assets = cash +inventory+prepayment
Total current assets = 6,000+27,000+6,000= 39,000
B) Total fixed assets = PPE- Accumulated depreciation
Total fixed assets = 40,000-4,000= 36,000
(I) Total Assets = 39,000+36,000= 75,000
(II) Bank loan = Total liabilities - current liabilities
Bank loan= 48,000-12,000 = 36,000
(iii) Contributed capital
Assets = Liabilities+ equity
75,000= 48,000+ Equity
Equity = 75,000-48,000= 27,000
Contributed capital = Equity- retained earnings
Contributed capital = 27,000-10,000= 17,000
(Iv) Total equity = 27,000
2) current Ratio = Current Assets/ Current Liabilities
Current Assets= 39,000
Current Liabilities= 12,000
Current Ratio= 39,000/12,000= 3.25
3) Quick ratio = Current Assets- inventory- prepaid expense/ current liabilities
Quick assets= 39,000- 27,000-6,000= 6,000
Current Liabilities= 12,000
Quick Ratio= 6,000/12,000= 0.50
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