PEPSICO LIMITED STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER: 2021 (R) 2020 (R) Sales 3 312 000 2 800 000 Cost of sales (1 616 000) (1 560 000) Gross profit 1 696 000 1 240 000 Selling and administrative expenses (672 000) (568 000) Operating profit 1 024 000 672 000 Interest expense (64 000) (32 000) Profit before tax 960 000 640 000 Tax (256 000) (172 000) Profit after tax 704 000 468 000 LIST OF BALANCES FROM THE STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER: 2021 (R) 2020 (R) Land and buildings 1 760 000 1 504 000 Plant and machinery 992 000 848 000 Investments 240 000 0 Inventories 384 000 400 000 Accounts receivable 408 000 256 000 Cash and cash equivalents 72 000 64 000 Ordinary share capital 1 600 000 1 600 000 Retained earnings 896 000 480 000 Long-term loan 640 000 320 000 Accounts payable 384 000 448 000 Income tax payable 128 000 64 000 Dividends payable 208 000 160 000 Additional information ¦ Selling and administrative expenses include depreciation as follows: Depreciation on buildings R96 000 Depreciation on plant and machinery R160 000 ¦ There were purchases but no disposals of property, plant and equipment for the financial year ended 31 December 2021. ¦ Total dividends for the year ended 31 December 2021 and 31 December 2020 amounted to R288 000 and R388 000 respectively. ¦ Inventories on 31 December 2019 amounted to R560 000. ¦ All purchases and sales of inventories were on credit. ¦ The number of shares in issue was 400 000. ¦ Credit terms from creditors are 90 days. Question 4 Use the information provided to answer the following questions: 4.1 Calculate the following ratios for 2021. Express answers to two decimal places. 4.1.1 Creditor payment period 4.1.2 Acid test ratio Refer to your answers in question 4.1.1 and 4.1.2. Comment on the creditor payment period and acid test ratio.
PEPSICO LIMITED
STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER:
2021 (R) 2020 (R)
Sales 3 312 000 2 800 000
Cost of sales (1 616 000) (1 560 000)
Gross profit 1 696 000 1 240 000
Selling and administrative expenses (672 000) (568 000)
Operating profit 1 024 000 672 000
Interest expense (64 000) (32 000)
Profit before tax 960 000 640 000
Tax (256 000) (172 000)
Profit after tax 704 000 468 000
LIST OF BALANCES FROM THE
2021 (R) 2020 (R)
Land and buildings 1 760 000 1 504 000
Plant and machinery 992 000 848 000
Investments 240 000 0
Inventories 384 000 400 000
Cash and cash equivalents 72 000 64 000
Ordinary share capital 1 600 000 1 600 000
Long-term loan 640 000 320 000
Accounts payable 384 000 448 000
Income tax payable 128 000 64 000
Dividends payable 208 000 160 000
Additional information
¦ Selling and administrative expenses include
Depreciation on buildings R96 000
Depreciation on plant and machinery R160 000
¦ There were purchases but no disposals of property, plant and equipment for the financial year ended 31 December
2021.
¦ Total dividends for the year ended 31 December 2021 and 31 December 2020 amounted to
R288 000 and R388 000 respectively.
¦ Inventories on 31 December 2019 amounted to R560 000.
¦ All purchases and sales of inventories were on credit.
¦ The number of shares in issue was 400 000.
¦ Credit terms from creditors are 90 days.
Question 4
Use the information provided to answer the following questions:
4.1 Calculate the following ratios for 2021. Express answers to two decimal places.
4.1.1 Creditor payment period
4.1.2 Acid test ratio
Refer to your answers in question 4.1.1 and 4.1.2. Comment on the creditor payment period and
acid test ratio.
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