Ratio Analysis -Solvency and Leverage Ratiosa. Debit Ratiob. Equity Ratioc. Debt-to-Equity Ratiod. Assets to Equity Ratioe. Time Interest earned Ratio CARIBBEAN CREAM LIMITEDStatement of Financial PositionFebruary 28, 2021(Expressed in Jamaica dollars unless otherwisestated)Notes20212020NON-CURRENT ASSETSProperty, plant and equipment4825,483,694 773,143,905Right-of-use assets5 (a)93,044,42595,435,877Total non-current assets918,528,119 868,579,782CURRENT ASSETSCash and cash equivalents6217,283,548 129,196,815Trade and other receivables793,514,36958,211,081Tax recoverable779,621Inventories162,352,192 117,774,685Total current assets473,150,109 305,962,202CURRENT LIABILITIESTrade and other payables214,491,486 185,346,512Taxation payable10,734,482Current portion of lease liabilities5 (b)17,456,68619,539,121Current portion of long-term loans106,977,77827,441,951Total current liabilities249,660,432 232,327,584Net current assets223,489,67773,634,618Total assets less current liabilities1,142,017,796 942,214,400NON-CURRENT LIABILITIESLong-term loans10206,927,474 104,972,207Lease liabilities5 (b)86,580,78979,622,207Deferred tax liability1114,576,94113,389,525Total non-current liabilities308,085,204 197,983,939EQUITYShare capital12111,411,290 111,411,290Accumulated profits722,521,302 632,819,171Total equity833,932,592 744,230,461Total non-current liabilities and equity1,142,017,796 942,214,400 Sheet1Sheet2Chapter 2- Liquidity RatiosFORMULASA. Working Capital RatioCurrent Assets minus Current LiabilitiesB. Acid Test ( or Quick) ratioQuick Assets/ Current LiabilitiesC. Current RatioD. Average Payment PeriodAccounts Payable/Average Purchas Per Day where Average Purchases Per Day = Annual Purchases/365E. Days Cash on Hand, Short Term SourcesCash on Hand /(Operating Expenses-Non-cash Expenses)/365Chapter 3. Šolvency and Leverage RatiosA. Debt RatioTotal Liabilities/ Total AssetsB. Equity RatioTotal Equity/Total AssetsC Dobt toty Doti.Totol Iiobilitio CARIBBEAN CREAM LIMITEDStatement of Profit or Loss and Other ComprehensiveIncomeYear ended February 28, 2021(Expressed in Jamaica dollars unless otherwisestated)Notes20212020Gross operating revenue131,870,188,0691,706,358,991Cost of operating revenue14 (a) (1,245,049,430) (1,160,747,229)Gross profit625,138,639545,611,762Other income1,994,192625,138,639547,605,954Administrative, selling and distribution expenses:Administrative14 (b)(427,856,374)(395,323,017)Selling and distribution14 (c)(60,656,587)(68,301,238)(488,512,961)(463,624,255)Impairment recovered/(loss) on trade receivables7(i)1,804,151(2,673,129)Operating profit before finance costs and taxation138,429,82981,308,570Finance income - interest1,333,2001,133,753Finance costs15(21,262,694)(20,270,767)Profit before taxation118,500,33562,171,556Taxation16(17,819,728)(7,602,157)Profit, being total comprehensive income for the year100,680,60754,569,399Earnings per stock unit170.270.14

Financial ratios: It is analysis of financial statements where ratios are created from Numerical…

CARIBBEAN CREAM LIMITED Statement of Financial Position February 28, 2021 (Expressed in Jamaica dollars unless otherwise stated) Notes 2021 2020 NON-CURRENT ASSETS Property, plant and equipment 4 825,483,694 773,143,905 Right-of-use assets 5 (a) 93,044,425 95,435,877 Total non-current assets 918,528,119 868,579,782 CURRENT ASSETS Cash and cash equivalents 217,283,548 129,196,815 Trade and other receivables 7 93,514,369 58,211,081 Tax recoverable 779,621 Inventories 8 162,352,192 117,774,685 Total current assets 473,150,109 305,962,202 CURRENT LIABILITIES Trade and other payables 214,491,486 185,346,512 Taxation payable 10,734,482 Current portion of lease liabilities 5 (b) 17,456,686 19,539,121 Current portion of long-term loans 10 6,977,778 27,441,951 Total current liabilities 249,660,432 232,327,584 Net current assets 223,489,677 73,634,618 Total assets less current liabilities 1,142,017,796 942,214,400 NON-CURRENT LIABILITIES Long-term loans 10 206,927,474 104,972,207 Lease liabilities 5 (b) 86,580,789 79,622,207 Deferred tax liability 11 14,576,941 13,389,525 Total non-current liabilities 308,085,204 197,983,939 EQUITY Share capital 12 111,411,290 111,411,290 Accumulated profits 722,521,302 632,819,171 Total equity 833,932,592 744,230,461 Total non-current liabilities and equity 1,142,017,796 942,214,400

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q