4. EasyJet and Ryair are aviation firms based in UK with operations throughout UK and East Europe. Your client Ms X has asked you to evaluate the performance of the two companies with a view to assessing their future prospects so that she can decide whether to invest in the one of the company. Your analysis should use ratios to compare the profitability of 1 each company during 2019 and 2020. Provided below is the extract of company's financial statements: EasyJet Rynair Consolidated Income Statement (Extract) 2020 2019 2020 2019 "£000" "£000" "£000" "£000" Revenues 551,844 356,859 487,405 (51,948) 38,123 624,050 (78,240) 162,933 Staff costs (69,388) 68,213 (61,222) 114,011 Operating Profit Interest Payables (5,228) 71,577 (8,195) 40,133 (30,886) 172,374 (19,609) 123,388 Profit before tax Consolidated Statement of Financial Position (Extract) 2019 2020 2020 2019 "£000" "£000" "£000" "£000" Non-current assets 541,407 216,587 951,806 613,627 Current assets 523,899 937,766 899,275 529,789 291,541 663,625 Cash and cash equivalents 427,894 48,600 626,720 374,756 244,435 Non-current loans 76,289 316,491 Shareholders' equity 727,704 1,002,274 669,898

4. EasyJet and Ryair are aviation firms based in UK with operations throughout UK and East Europe. Your client Ms X has asked you to evaluate the performance of the two companies with a view to assessing their future prospects so that she can decide whether to invest in the one of the company. Your analysis should use ratios to compare the profitability of 1 each company during 2019 and 2020. Provided below is the extract of company's financial statements: EasyJet Rynair Consolidated Income Statement (Extract) 2020 2019 2020 2019 "£000" "£000" "£000" "£000" Revenues 551,844 356,859 487,405 (51,948) 38,123 624,050 (78,240) 162,933 Staff costs (69,388) 68,213 (61,222) 114,011 Operating Profit Interest Payables (5,228) 71,577 (8,195) 40,133 (30,886) 172,374 (19,609) 123,388 Profit before tax Consolidated Statement of Financial Position (Extract) 2019 2020 2020 2019 "£000" "£000" "£000" "£000" Non-current assets 541,407 216,587 951,806 613,627 Current assets 523,899 937,766 899,275 529,789 291,541 663,625 Cash and cash equivalents 427,894 48,600 626,720 374,756 244,435 Non-current loans 76,289 316,491 Shareholders' equity 727,704 1,002,274 669,898

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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