Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
Related questions
Question
Cash Coverage
Profit Margin
Transcribed Image Text:Angostura Holdings Limited
Income Statements
For the years ended December 31, 2018 & 2019
2018
2019
('000s)
783,692
('000s)
847,200
Sales
Cost of Sales
(392,209)
391,483
(429,723)
417,477
Gross Profit
Selling & Marketing Expenses
Administrative Expenses
Expected credit loss on trade receivables
(145,010)
(69,935)
(2,487)
(140,205)
(88,713)
(4,304)
Interest Income
5,201
Other Income/(Expenses)
Earnings before Interest & Taxes
Interest Expense
8,648
3,427
196,330
398
179,650
(312)
179,338
(47,685)
131,653
(555)
195,775
Taxable Income
Taxation
(59,935)
135,840
Net Income
Dividends Paid
43,318
49,507
Angostura Holdings Limited
Statement of Financial Position
As at December 31, 2018 & 2019
2018
2019
2018
2019
('000s)
('000s)
('000s)
('000s)
ASSETS
LIABILITIES & EQUITY
Current Assets
Current Liabilities
Accounts Payables
107,299
16,572
Inventories
245,491
253,769
80,929
Accounts Receivables
185,870
411,461
145,742
Other Current Liabilities
4,098
Other Current Assets
318,475
85.027
123,871
Cash & Equivalents
103, 151
954,251
119,075
828,783
Non-current Liabilites
75,705
77,337
Non Current Assets, Net
387,117
388,458
Total Liabilities
160,732
201,208
Equity
Share Capital & Other Reserves
Retained Earnings
Total Equity
219,354
219,354
835,814
922,147
1055,168
1141,501
TOTAL ASSETS
1215,900
1342,709
TOTAL LIAB. & EQUITY
1215,900
1342,709
ADDITIONAL NOTES to FINANCIAL STATEMENTS:
> Depreciation Expense for 2019 = $26,144 ('000)
Common Stock = Share Capital & Other Reserves
Transcribed Image Text:Step 1
Financial ratios are quantitative measures used by analysts to determine the financial
performance of a company based on different indicators such as profitability, liquidity,
efficiency, etc.
Step 2
Computation of Debt to Equity Ratio (2019) :
Debt to Equity Ratio= Total Liabilities
Total Shareholders' Equity
201,208
1,141,501
=0. 176
Computation of Total Debt Ratio (2019) :
Total Liabilities
Total Debt Ratio="Total Assets
201,208
1,342,709
=0. 149
Computation of Times Interest Earned Ratio (2019) :
Times Interest Earned Ratio=Earnings before_ interest and taxes+Depreciation
Interest expenses
196,330+26,144
555
=400. 85
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