e. Time Interest earned Ratio E. Times Interest Earned Ratio Income before Interest and Taxes/ Interest Expense 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 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

Financial ratios are those ratios which state the line item of the financial statement in percentage…

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Business

Accounting

e. Time Interest earned Ratio E. Times Interest Earned Ratio Income before Interest and Taxes/ Interest Expense

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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Concept explainers

Bookkeeping

Bookkeeping is the process of recording the financial transactions of a company on a regular basis. With the process of bookkeeping, companies can track important financial information that helps management in making crucial decisions.

Question

e. Time Interest earned Ratio

E. Times Interest Earned Ratio

Income before Interest and Taxes/ Interest Expense

CARIBBEAN CREAM LIMITED
Statement of Profit or Loss and Other Comprehensive
Income
Year ended February 28, 2021
(Expressed in Jamaica dollars unless otherwise
stated)
Notes
2021
2020
Gross operating revenue
13
1,870,188,069
1,706,358,991
Cost of operating revenue
14 (a) (1,245,049,430) (1,160,747,229)
Gross profit
625,138,639
545,611,762
Other income
1,994,192
625,138,639
547,605,954
Administrative, selling and distribution expenses:
Administrative
14 (b)
(427,856,374)
(395,323,017)
Selling and distribution
14 (c)
(60,656,587)
(68,301,238)
(488,512,961)
(463,624,255)
Impairment recovered/(loss) on trade receivables
7
(i)
1,804,151
(2,673,129)
Operating profit before finance costs and taxation
138,429,829
81,308,570
Finance income - interest
1,333,200
1,133,753
Finance costs
15
(21,262,694)
(20,270,767)
Profit before taxation
118,500,335
62,171,556
Taxation
16
(17,819,728)
(7,602,157)
Profit, being total comprehensive income for the year
100,680,607
54,569,399
Earnings per stock unit
17
0.27
0.14

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
6
217,283,548 129,196,815
Trade and other receivables
7
93,514,369
58,211,081
Tax recoverable
779,621
Inventories
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

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