Selected financial data (in thousands) of two competitors, NEW Ltd and OLD Ltd, for 2021 are presented here.Net salesCost of salesBorrowing costs (interest expense)Income tax expenseProfitCurrent assetsNon-current assetsTotal assetsCurrent liabilitiesNon-current liabilitiesTotal equityTotal liabilities and equityTotal assets(a) Working capital.(b) Current ratio.(c)NEW LtdDebt to total assets ratio.$420 000227 50036 75049 00056 000$115 500444 500$560 000$ 52 500245 000262 500$560 000RequiredFor each entity, calculate these values and ratios:$490 000Selected statement of profit or loss data for yearCondensed statement of financial position (end of year)Beginning-of-year balances(d) Return on assets.(e) Profit margin.(f)Compare the liquidity, solvency and profitability of the two entities.OLD Ltd$350 000178 500105 00014 00017 500$ 70 000612 500$682 500$ 35 000560 00087 500$682 500$542 500

Ratio analysis is considered as the key aspect to measure the performance of the company. It is the…

Selected financial data (in thousands) of two competitors, NEW Ltd and OLD Ltd, for 2021 are presented here. NEW Ltd Net sales Cost of sales Borrowing costs (interest expense) Income tax expense Profit Current assets Non-current assets Total assets Current liabilities Non-current liabilities Total equity Total liabilities and equity Total assets (a) Working capital. (b) Current ratio. $420 000 227 500 36 750 49 000 56 000 Debt to total assets ratio. $115 500 444 500 $560 000 $ 52 500 245 000 262 500 $560 000 Required For each entity, calculate these values and ratios: $490 000 Selected statement of profit or loss data for year Condensed statement of financial position (end of year) Beginning-of-year balances (c) (d) Return on assets. (e) Profit margin. (f) Compare the liquidity, solvency and profitability of the two entities. OLD Ltd $350 000 178 500 105 000 14 000 17 500 $ 70 000 612 500 $682 500 $ 35 000 560 000 87 500 $682 500 $542 500

Selected financial data (in thousands) of two competitors, NEW Ltd and OLD Ltd, for 2021 are presented here. NEW Ltd Net sales Cost of sales Borrowing costs (interest expense) Income tax expense Profit Current assets Non-current assets Total assets Current liabilities Non-current liabilities Total equity Total liabilities and equity Total assets (a) Working capital. (b) Current ratio. $420 000 227 500 36 750 49 000 56 000 Debt to total assets ratio. $115 500 444 500 $560 000 $ 52 500 245 000 262 500 $560 000 Required For each entity, calculate these values and ratios: $490 000 Selected statement of profit or loss data for year Condensed statement of financial position (end of year) Beginning-of-year balances (c) (d) Return on assets. (e) Profit margin. (f) Compare the liquidity, solvency and profitability of the two entities. OLD Ltd $350 000 178 500 105 000 14 000 17 500 $ 70 000 612 500 $682 500 $ 35 000 560 000 87 500 $682 500 $542 500

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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The comparative accounts payable and long-term debt balances for a company follow. Current Year Previous YearAccounts payable $114,240 $102,000Long-term debt 127,200 120,000 Based on this information, what is the amount and percentage of increase or decrease that wouldbe shown on a balance sheet with horizontal analysis?
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Show your workings for the question below; The summarised financial statements of LL Limited are as follows:” Profit & Loss Account/Income Statement for the year ended 31 December 2020 £000 Operating profit 80 Investment income 5 Interest payable (7) Profit before taxation 78 Taxation (14) Profit after taxation 64 Dividends payable (20) Retained profit 44 Balance Sheets 2020 2020 2019 2019 £000 £000 £000 £000 Fixed/Non-current assets Cost 370 290 Depreciation (70) (50) 300 240 Current assets Stock/inventory 95 70 Trade debtors/receivables 75 56 Short-term deposits 35 26 Bank 44 249 152 Current liabilities Trade creditors/payables 40 45 Interest payable 18 23 Taxation payable 10 12 Dividends payable 15 22 Bank…
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From the following information of Axis Limited compute the Replacement Cost Value / Net Substantial Value Liabilities Equity Share Capital Preference Share Capital Reserves and Surplus Adjustment Long-term Debt Short-term Debt Creditors Amount (Mn$) 2000 1100 800 1400 800 1700 Assets 1100 Debtors 8,900 Fixed Assets Inventories Cash and Bank Balance Amount (Mn$) 4100 2350 1150 1300 8,900
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