STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED DECEMBER 31 2020 2019 2018 Turnover 373,578 424,486 456,300 Cost of sales (253,604) (254,210) (198,900) Gross profit 119,974 170,276 257,400 Impairment of financial assets (2,477) (1,800) (5,400) Distribution costs (87,036) (91,309) (96,100) Administrative expenses (32,556) (50,656) (67,200) Other operating income 2,369 10,039 3,500 Operating profit 274 36,550 92,200 Finance income 2,594 4,949 7,200 Finance costs (2,069) (2,765) (3,400) Profit before income tax 799 38,734 96,000 Income tax expense (285) (13,718) (15,450) Profit for the year 514 25,016 80,550 Other comprehensive income - - - Total comprehensive income 514 25,016 80,550 Table 1 Source (Author, 2022) CLOUD 9 LTD STATEMENT OF FINANCIAL POSITION AS AT DECEMBER 31 Non-current assets 2020 2019 2018 Property, plant and equipment 178,315 187,380 197,000 Right-of-use assets 2,793 3,726 4,500 Intangible assets 1,426 867 1,200 Current assets 182,534 191,973 202,700 Inventories 94,372 96,606 99,500 Trade and other receivables 100,612 47,024 75,000 Current income tax assets 4,713 1,184 3,200 Cash and cash equivalents 54,021 39,032 46,950 253,718 183,846 224,650 TOTAL ASSETS 436,252 375,819 427,350 EQUITY AND LIABILITY Stated capital 10,000 10,000 10,000 Retained earnings 250,105 249,591 270,200 Liabilities 260,105 259,591 280,200 Non-current liabilities: Deferred tax liabilities 9,349 11,295 10,050 Employee benefit obligations 284 1,222 3,400 Lease liabilities 1,833 3,717 5,000 Current liabilities: 11,466 16,234 18,450 Lease liabilities 713 425 1,050 Employee benefit obligations 39 168 500 Trade and other payables 160,923 96,363 105,000 Dividend payable 3,006 3,038 3,700 164,681 99,994 110,250 Total liabilities 176,147 116,228 128,700 TOTAL EQUITY AND LIABILITIES Table 2 Source (Author, 2022) 436,252 375,819 427,350 Required: Using ratio analysis, assess the companies performance and advice management
STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED DECEMBER 31
|
|
2020 |
2019 |
2018 |
|
Turnover |
373,578 |
424,486 |
456,300 |
|
Cost of sales |
(253,604) |
(254,210) |
(198,900) |
|
Gross profit |
119,974 |
170,276 |
257,400 |
|
Impairment of financial assets |
(2,477) |
(1,800) |
(5,400) |
|
Distribution costs |
(87,036) |
(91,309) |
(96,100) |
|
Administrative expenses |
(32,556) |
(50,656) |
(67,200) |
|
Other operating income |
2,369 |
10,039 |
3,500 |
|
Operating profit |
274 |
36,550 |
92,200 |
|
Finance income |
2,594 |
4,949 |
7,200 |
|
Finance costs |
(2,069) |
(2,765) |
(3,400) |
|
Profit before income tax |
799 |
38,734 |
96,000 |
|
Income tax expense |
(285) |
(13,718) |
(15,450) |
|
Profit for the year |
514 |
25,016 |
80,550 |
|
Other comprehensive income |
- |
- |
- |
|
Total comprehensive income |
514 |
25,016 |
80,550 |
|
Table 1 Source (Author, 2022) |
|
|
|
CLOUD 9 LTD
|
Non-current assets |
2020 |
2019 |
2018 |
|
Property, plant and equipment |
178,315 |
187,380 |
197,000 |
|
Right-of-use assets |
2,793 |
3,726 |
4,500 |
|
Intangible assets |
1,426 |
867 |
1,200 |
|
Current assets |
182,534 |
191,973 |
202,700 |
|
Inventories |
94,372 |
96,606 |
99,500 |
|
Trade and other receivables |
100,612 |
47,024 |
75,000 |
|
Current income tax assets |
4,713 |
1,184 |
3,200 |
|
Cash and cash equivalents |
54,021 |
39,032 |
46,950 |
|
|
253,718 |
183,846 |
224,650 |
|
TOTAL ASSETS |
436,252 |
375,819 |
427,350 |
|
EQUITY AND LIABILITY Stated capital |
10,000 |
10,000 |
10,000 |
|
|
250,105 |
249,591 |
270,200 |
|
Liabilities |
260,105 |
259,591 |
280,200 |
|
Non-current liabilities: |
9,349 |
11,295 |
10,050 |
|
Employee benefit obligations |
284 |
1,222 |
3,400 |
|
Lease liabilities |
1,833 |
3,717 |
5,000 |
|
Current liabilities: |
11,466 |
16,234 |
18,450 |
|
Lease liabilities |
713 |
425 |
1,050 |
|
Employee benefit obligations |
39 |
168 |
500 |
|
Trade and other payables |
160,923 |
96,363 |
105,000 |
|
Dividend payable |
3,006 |
3,038 |
3,700 |
|
|
164,681 |
99,994 |
110,250 |
|
Total liabilities |
176,147 |
116,228 |
128,700 |
|
TOTAL EQUITY AND LIABILITIES Table 2 Source (Author, 2022) |
436,252 |
375,819 |
427,350 |
|
Required: |
|
|
|
- Using ratio analysis, assess the companies performance and advice management
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