QUESTION 2 Sweets plc is a long-established sweets and confectionery manufacturer. All products are manufactured in the UK, but sales are made worldwide. It is a growing but competitive market. Given below are extracts from their financial statements, Revenue Cost of sales Gross profit Profit and Loss statement for the year ended 31st December 2020 £m 6,441 (3,096) 3,345 Distribution costs Marketing and selling costs Administrative expenses Operating profit Profit/loss on sale of fixed assets Investment income Interest payable Profit/(loss) before taxation Taxation Profit for the year 2021 £m 6,738 (3.235) 3,503 (437) (1,324) (937) 805 19 22 (226) 620 (189) 431 (422) (1,274) (950) 699 (5) 26 (181) 539 (173) 366

QUESTION 2 Sweets plc is a long-established sweets and confectionery manufacturer. All products are manufactured in the UK, but sales are made worldwide. It is a growing but competitive market. Given below are extracts from their financial statements, Revenue Cost of sales Gross profit Profit and Loss statement for the year ended 31st December 2020 £m 6,441 (3,096) 3,345 Distribution costs Marketing and selling costs Administrative expenses Operating profit Profit/loss on sale of fixed assets Investment income Interest payable Profit/(loss) before taxation Taxation Profit for the year 2021 £m 6,738 (3.235) 3,503 (437) (1,324) (937) 805 19 22 (226) 620 (189) 431 (422) (1,274) (950) 699 (5) 26 (181) 539 (173) 366

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Similar questions

REQUIRED Use the information provided in below to answer the following questions for the financial year ended 31 December 2023. Note: Answers to the ratios must be expressed to two decimal places. Comment on the management of debtors and creditors after calculating the relevant ratios. Determine the percentage of the profit after tax that has been retained by the company. Calculate the return on capital employed and comment on your answer. Would prospective lenders be concerned about the relative proportion of borrowed capital and own capital? Motivate your answer by calculating the relevant ratio. Calculate the ratio that measures the efficiency with which the non-current and current assets of company were managed. Comment on the ability of the company to settle its short-term debts under distress conditions. Use a relevant ratio to motivate your answer. INFORMATION The following information was obtained from the financial records of Fiona Limited:
c. Using DuPont framework, compute Bersatu Berhad’s returns on equity for 2020 and 2021? Show all formulas and calculations.d. Is there any significant change in the returns on equity over the two years? What conclusion can you arrive with regards to thefactors influencing the returns on equity
Calculate the ratios of Woolworths Group (Australian retail company) for the year 2020: Ratios to calculate: Profitability (ROSF, ROCE, Gross margin, Operating profit margin, Cash flow to Sales*) Efficiency (Inventory turnover period, Average settlement period, Sales revenue to capital employed) Liquidity (Current ratio, Acid test (quick) ratio, Cash flow ratio*). Stability/Capital Structure (Gearing ratio, Interest cover ratio, Debt coverage ratio*) Investment/Market Performance (Earnings per share, Price earnings ratio, Operating cash flow per share*)
With a given information below: (A) Prepare Income Statement and Balance Sheet in the Year 2020. (B) Analyze Income Statement and Balance Sheet in the Year 2020 Vertically. (C) Compute Financial Ratios: (1) ROE, (2) ROA, (3) Average Collection Period, (4) Debt to Asset, (5) Debt to Equity, (6) Time Interest Earned, (7) Total Assets Turnover, (8) Operating Profit Margin, (9) Return On Common Equity (ROCE), (10) Net Working Capital Ratio, (11) Quick Ratio, (12) Current Ratio. Cash $6,000 Sales $100,000 Utility Expense $8,000 Buildings $65,000 Common Stock $45,000 Accounts Payable $12,000 Supplies $4,000 Cost of Goods Sold $58,000 Interest Expense $5,000 Additional Paid in Capital $20,000 Bonds Payable $40,000 Supplies Expense $3,000 Salaries Expense $16,000 Accounts Receivable $10,000 Inventories $45,000 Retained Earnings $5,000 (beg. bal.) Income Tax Rate 20%
The image uploaded is the calculation of Societe Generale Profitability ratios, shorter liquidity ratios, long-term liquidity ratios, and investment ratios for 2020, 2021, 2022. A base year of 2019 was also added. Evaluate the financial performance by comparing the three (3) years' financial performance that is 2020, 2021, and 2022 I have provided in the table with the base year.
QUESTION 2: The percentages of some items related to the Balance Sheet and Income Statements of XYZ Sanayi ve Ticaret A.Ş. for the years 2016-2017-2018-2019 and 2020, obtained by using the Trend Percentages (Trend) Analysis Method, are given in the table below. transactions Stocks Current Assets 2016 2017 2018 2019 2020 100 240 350 570 1200 100 140 990 Tangible Fixed Assets 100 110 130 150 400 Short-Term Liabilities Net Sales 100 160 310 490 1050 100 200 300 530 1000 Desired: Using the trend percentages in the table above; • Current Assets-Inventories Relationship, • Tangible Assets-Net Sales Relationship, • Interpret the Current Assets-Short-Term Liabilities relationship.
A company has the following items for the fiscal year 2020: Total Equity = 15 million Total Assets = 30 million EBIT = 4 million Interest expense = 1 million Calculate the company’s equity multiplier and interest coverage ratio Write the formula for the following ratios and what each ratio measures: Asset turnover Inventory Turnover and Days Inventory Receivable Collection Period Write down the DuPont framework. How would you explain to your non-MBA non-Finance friend about the DuPont framework and why it is important? A company has the following items for the fiscal year 2020: Revenue = 10 million EBIT = 4 million Net income = 2 million Total Equity = 15 million Total Assets = 30 million Calculate the company’s net profit margin, asset turnover, equity multiplier and ROE Explain cash conversion cycle and why it is important to companies? Is it possible that a company has a negative cash cycle? Is it a good thing or a bad thing? A company has days of inventory 80…
a. Explain the financial performance of Bonia Company at 2020. b. Explain the financial performance of Bonia Company at 2019.
Answer the following: 19. Rate of return on Sales 20. Rate of Return on Owner’s Equity21. Rate of Return on Common Equity
Based on the following information as of December 31,2020, compute the company’s debt-equity ratio. Assume current liabilities are all interest-bearing. Round to nearest two decimal places. Current assets: 15 Non-current assets: 12 Current Liabilities: 22 Non-current Liabilities: 4 Debt to Equity Ratio = ?
Base on the financial ratios of company A, what is your recommendations and conclusion for company A.
Using the financial statements in the image, calculate the following ratios for both the FY 2017 and FY 2018: Current Ratio Quick Ratio Total Asset Turnover Average Collection Total Debt to Total Assets Times Interest Earned Net Profit Margin Return on Assets Return on Equity Modified Du Point Equation for FY 2018 PE Ratio Market to Book Ratio