INSTRUCTIONS – The following information has been extracted from the financial statements of Dandy & Grandee Superstores Ltd. Extracts from the Income Statements for year ended 30 April …… 2019 2018 $’000 $’000 Sales 11,200 9,750 Cost of sales 8,460 6,825 Net profit before tax 465 320 This is after charging: Depreciation 360 280 Loan note interest 80 60 Interest on bank overdraft 15 9 Audit fees 12 10 Statement of financial position as at 30 April …. 1`2019 2018 $’000 $’000 $’000 $’000 Assets Non -current assets 1850 1430 Current assets Inventory 640 490 Receivables 1230 1080 Cash 80 1950 120 1690 TOTAL ASSETS 3800 3120 EQUITY & LIABILITIES Equity Ordinary share capital 800 800 Retained earnings 1310 2110 930 1730 Non-current liabilities 10% loan stock 800 600 Current liabilities Bank overdraft 110 80 Payables 750 690 Taxation 30 890 20 790 3800 3120 The following figures have been extracted from the records of D & G Superstores Ltd for the previous year as well as the relative industry averages: D&G 30 April 2018 Industry Average 30 April 2018 ROCE (capital employed = equity + debentures) 16.70% 18.50% Profit/sales 3.90% 4.73% Asset turnover 4.29 3.91 Current ratio 2.0 1.9 Quick ratio 1.42 1.27 Gross profit margin 30.00% 35.23% Accounts receivable collection period 40 days 52 days Accounts payable payment period 37 days 49 days Inventory turnover (times) 13.90 18.30 Gearing 26.37% 32.71% You are required to: Calculate comparable ratios (to 2 decimal places) for Dandy & Grandee Superstores Ltd for the year ended 30 April 2019. Show all calculations.

INSTRUCTIONS – The following information has been extracted from the financial statements of Dandy & Grandee Superstores Ltd. Extracts from the Income Statements for year ended 30 April …… 2019 2018 $’000 $’000 Sales 11,200 9,750 Cost of sales 8,460 6,825 Net profit before tax 465 320 This is after charging: Depreciation 360 280 Loan note interest 80 60 Interest on bank overdraft 15 9 Audit fees 12 10 Statement of financial position as at 30 April …. 1`2019 2018 $’000 $’000 $’000 $’000 Assets Non -current assets 1850 1430 Current assets Inventory 640 490 Receivables 1230 1080 Cash 80 1950 120 1690 TOTAL ASSETS 3800 3120 EQUITY & LIABILITIES Equity Ordinary share capital 800 800 Retained earnings 1310 2110 930 1730 Non-current liabilities 10% loan stock 800 600 Current liabilities Bank overdraft 110 80 Payables 750 690 Taxation 30 890 20 790 3800 3120 The following figures have been extracted from the records of D & G Superstores Ltd for the previous year as well as the relative industry averages: D&G 30 April 2018 Industry Average 30 April 2018 ROCE (capital employed = equity + debentures) 16.70% 18.50% Profit/sales 3.90% 4.73% Asset turnover 4.29 3.91 Current ratio 2.0 1.9 Quick ratio 1.42 1.27 Gross profit margin 30.00% 35.23% Accounts receivable collection period 40 days 52 days Accounts payable payment period 37 days 49 days Inventory turnover (times) 13.90 18.30 Gearing 26.37% 32.71% You are required to: Calculate comparable ratios (to 2 decimal places) for Dandy & Grandee Superstores Ltd for the year ended 30 April 2019. Show all calculations.

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

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INSTRUCTIONS –

The following information has been extracted from the financial statements of Dandy & Grandee Superstores Ltd.

Extracts from the Income Statements for year ended 30 April ……

2019 2018

	$’000	$’000
Sales	11,200	9,750
Cost of sales	8,460	6,825
Net profit before tax	465	320
This is after charging:
Depreciation	360	280
Loan note interest	80	60
Interest on bank overdraft	15	9
Audit fees	12	10

Statement of financial position as at 30 April ….

	1`2019	2018
	$’000	$’000	$’000	$’000
Assets
Non -current assets		1850		1430
Current assets
Inventory	640		490
Receivables	1230		1080
Cash	80	1950	120	1690
TOTAL ASSETS		3800		3120
*EQUITY & LIABILITIES*
Equity
Ordinary share capital	800		800
Retained earnings	1310	2110	930	1730
Non-current liabilities
10% loan stock		800		600
Current liabilities
Bank overdraft	110		80
Payables	750		690
Taxation	30	890	20	790
		3800		3120
The following figures have been extracted from the records of D & G Superstores Ltd for the previous year as well as the relative industry averages:
	D&G 30 April 2018	Industry Average 30 April 2018
ROCE (*capital employed = equity + debentures)*	16.70%	18.50%
Profit/sales	3.90%	4.73%
Asset turnover	4.29	3.91
Current ratio	2.0	1.9
Quick ratio	1.42	1.27
Gross profit margin	30.00%	35.23%
Accounts receivable collection period	40 days	52 days
Accounts payable payment period	37 days	49 days
Inventory turnover (times)	13.90	18.30
Gearing	26.37%	32.71%

You are required to:

Calculate comparable ratios (to 2 decimal places) for Dandy & Grandee Superstores Ltd for the year ended 30 April 2019. Show all calculations.

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