Mr Big John would want to venture into cat food processing, advise him on the management process and activities he needs to consider to assist him in making a viable decision. 2. Explain and discuss each ratio in detail, analyze and interpret (calculate the ratio, indicate the rule of thumb for the ratio, advice on the status of the business and on what Mr. Molefe has to do to improve) the financial position according to the following: 2.1. Current Ratio. 2.2. Calculate Gross margin. 2.3. Calculate Return on Assets.
Mr Big John would want to venture into cat food processing, advise him on the management process and activities he needs to consider to assist him in making a viable decision. 2. Explain and discuss each ratio in detail, analyze and interpret (calculate the ratio, indicate the rule of thumb for the ratio, advice on the status of the business and on what Mr. Molefe has to do to improve) the financial position according to the following: 2.1. Current Ratio. 2.2. Calculate Gross margin. 2.3. Calculate Return on Assets.
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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Mr Big John would want to venture into cat food processing, advise him on the
management process and activities he needs to consider to assist him in
making a viable decision.
2. Explain and discuss each ratio in detail, analyze and interpret (calculate the
ratio, indicate the rule of thumb for the ratio, advice on the status of the
business and on what Mr. Molefe has to do to improve) the financial
position according to the following:
2.1. Current Ratio.
2.2. Calculate Gross margin.
2.3. Calculate Return on Assets .
Transcribed Image Text:Fixed Assets
Tunnel
Operational Infrastructure
Delivery Vehicle
Current Assets
Debtors
Bank Account
Total Assets
R
R
R
1 598 329
R
R
1598 329
R
6 485 209
Equity & Liabilities
2022
Capital & Reserves
R
1 505 037
Current Year Earnings
R
1 505 037
Retained Income
R
Non-Current Liabilities
R
3 931 588
Term Loan
R
3 931 588
Current Liabilities
R
1 048 584
Creditors
R
Term Loan
R
1048 584
Total Equity & Libilities
R
6 485 209
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H
Income Statement
2022
Turnover
5 300 245
Cost of Sales
3 518 423
Gross Profit
1781 822
Gross Profit %
Expenses
Accounting Fees
2 500
Advertising & Marketing
Bank Charges
2000
Cleaning Expenses
5 000
Computer Expenses
5 000
Consumables
2 500
Electricity & Water
260 140
Entertainment
HACCP
25 000
Insurance
25 650
Legal Fees
5 000
Motor Vehicle Expenses
10 000
Postage
2 000
Printing & Stationery
3 000
Professional Fees
10 000
Rent
293 204
Transport to Warehouse
677 160
Salaries & Wages
208 423
24 487
2 500
4000
10 000
71 250
1648 814
475 000
(341 993)
673 453
Balance sheet for 2022
Income Statement for 2022
Security
Assets
Subscriptions
Telephone & Fax
Training
Plant Maintenance.
Total Expenses
Depreciation
Profit/(Loss) before Interest & Tax
R
R
Interest
Taxation
Profit/(Loss) for the year
2022
4 886 880
4 019 880
(1015 446)
417 000
450 000
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