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Calculate the Gearing Ratio and Interest Coverage Ratio for 2021 and 2022

Calculate the Gearing Ratio and Interest Coverage Ratio for 2021 and 2022

FINANCIAL ACCOUNTING
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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Calculate the Gearing Ratio and Interest Coverage Ratio for 2021 and 2022

Table 1: Jets Ltd Statement of Financial Position as at 30 June 2022 2022 Current Assets Cash and cash equivalent Trade receivables Inventory Total Current assets Non-Current Assets Total Assets Current liabilities Trade payables Tax payable Total current liabilities Non-Current Liabilities Total Liabilities Share capital and reserves Total liabilities I share capital and reserves $m 20 70 2,240 2,330 11,400 13,730 3,020 315 3,335 5,350 8,685 5,045 13,730 2021 $m 220 74 1,900 2,194 12,000 14,194 2,700 400 3,100 6,094 9,194 5,000 14.194
Transcribed Image Text:Table 1: Jets Ltd Statement of Financial Position as at 30 June 2022 2022 Current Assets Cash and cash equivalent Trade receivables Inventory Total Current assets Non-Current Assets Total Assets Current liabilities Trade payables Tax payable Total current liabilities Non-Current Liabilities Total Liabilities Share capital and reserves Total liabilities I share capital and reserves $m 20 70 2,240 2,330 11,400 13,730 3,020 315 3,335 5,350 8,685 5,045 13,730 2021 $m 220 74 1,900 2,194 12,000 14,194 2,700 400 3,100 6,094 9,194 5,000 14.194
Table 2: Jets Ltd Statement of Comprehensive Income for the Year ending 30 June 2022 2022 2021 $m $m Revenue Cost of sales Gross profit Operating expenses Operating profit Finance income Finance costs Profit on ordinary activities before taxation Income tax Profit for the year 18,080 (11,336) 6,744 (5,044) 1,700 30 (580) 1,150 (345) 805 18,000 (11,026) 6,974 (4,574) 2,400 100 (400) 2,100 (630) 1,470
Transcribed Image Text:Table 2: Jets Ltd Statement of Comprehensive Income for the Year ending 30 June 2022 2022 2021 $m $m Revenue Cost of sales Gross profit Operating expenses Operating profit Finance income Finance costs Profit on ordinary activities before taxation Income tax Profit for the year 18,080 (11,336) 6,744 (5,044) 1,700 30 (580) 1,150 (345) 805 18,000 (11,026) 6,974 (4,574) 2,400 100 (400) 2,100 (630) 1,470
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