Below is an incomplete Statement of Financial Position for a company at the end of 2020. ($’000) Current Assets Cash 6 Inventory 27 Prepayments
Below is an incomplete
($’000)
Current Assets
Cash 6
Inventory 27
Prepayments 6
Non-Current Assets
Property, Plant & Equipment 40
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Total Assets ?
Current Liabilities
Suppliers Accounts Payable 12
Non-Current Liabilities
Bank Loan ?
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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)
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