Hardy is a public listed manufacturing company. Its summarised financial statements for the year ended 30 September 2010 (and 2009 comparatives) are:   2010 RM’000 2009 RM’000 Revenue 29,500 36,000 Cost of sales   (25,500)  (26,000) Gross profit   4,000 10,000   Distribution costs (1,050)  (800) Administrative expenses     (4,900) (3,900) Investment income  50 200 Finance costs (600) (500) Profit (loss) before taxation   (2,500)  5,000

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
icon
Related questions
Question

Hardy is a public listed manufacturing company. Its summarised financial statements for the year ended 30 September 2010 (and 2009 comparatives) are:

 

2010

RM’000

2009

RM’000

Revenue

29,500

36,000

Cost of sales

 

(25,500)

 (26,000)

Gross profit

 

4,000

10,000

 

Distribution costs

(1,050)

 (800)

Administrative expenses

 

 

(4,900)

(3,900)

Investment income

 50

200

Finance costs

(600)

(500)

Profit (loss) before taxation

 

(2,500)

 5,000

Income tax (expense) relief

 

 400

(1,500)

Profit (loss) for the year

(2,100)

3,500

Income statements for the year ended 30 September:

 

Statements of financial position as at 30 September:

 

 

2010

2009

 

RM’000

RM’000

RM’000

RM’000

Assets

 

 

 

 

Non-current assets

 

 

 

 

Property, plant and equipment

17,600

 

 24,500

 

 

Investments at fair value through profit or loss

2,400

 20,000

 4,000

 28,500

 

 

 

 

 

Current assets

 

 

 

 

Inventory and work-in-progress

 2,200

 

1,900

 

Trade receivables

 2,200

 

2,800

 

Tax asset

600

 

nil

 

Bank

 1,200

6,200

100

4,800

Total assets

 

26,200

 

 33,300

 

 

 

 

 

Equity and liabilities

 

 

 

 

Equity

 

 

 

 

Equity shares of $1 each

13,000

 

12,000

 

 

Share premium

1,000

 

nil

 

Revaluation reserve

nil

 

4,500

 

Retained earnings

3,600

17,600

 6,500

23,000

 

 

 

 

 

Non-current liabilities

 

 

 

 

 

Bank loan

4,000

 

5,000

 

Deferred tax

1,200

5,200

700

5,700

 

 

 

 

 

Current liabilities

 

 

 

 

Trade payables

3,400

 

2,800

 

Current tax payable

nil

3,400

1,800

 

4,600

Total equity and liabilities

 

26,200

 

33,300

Ratio for 2010 and 2019 for comparision purpose:

Ratios:

2010

2009

Gross profit margin

13.6%

27.8%

Operating profit margin

-6.6%

14.7%

Return on year-end capital employed

-11.9%

15.2%

Net asset

1.29 times

1.25 times

Current ratio

1.8:1

1.0:1

Average inventory turnover

12.4 times

13.7 times

Trade payables’ payment period

49 days

49 days

Debt  to equity

22.7%

21.7%

Required: Analyse and discuss the financial performance as well as the non-financial performance of Hardy.

Expert Solution
trending now

Trending now

This is a popular solution!

steps

Step by step

Solved in 3 steps

Blurred answer
Knowledge Booster
Income Statement Analysis
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education