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 Prepare for Hardy the following mentioned ratios for both years. 1)Debt to equity (please tell me whether deferred tax is taken as per ACCA) 2)Quick ratio 3)Pre-tax return on equity *Ratios must be calculated as per ACCA formula and examiners' report Analyse and discuss the financial performance based on the 3 ratios by also taking the income statement and statement of financial statement into consideration
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
|
(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:
|
|
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 |
|
|
|
3,600 |
17,600 |
6,500 |
23,000 |
|
|
|
|
|
|
|
Non-current liabilities
|
|
|
|
|
|
Bank loan |
4,000 |
|
5,000 |
|
|
|
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 |
Prepare for Hardy the following mentioned ratios for both years.
1)Debt to equity (please tell me whether deferred tax is taken as per ACCA)
2)Quick ratio
3)Pre-tax return on equity
*Ratios must be calculated as per ACCA formula and examiners' report
Analyse and discuss the financial performance based on the 3 ratios by also taking the income statement and statement of financial statement into consideration.
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