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The annual financial statements of Hunter Ltd for the financial years ended 31 December 2018 and 2019 are presented below. Hunter Limited Statement of profit or loss and other comprehensive income for the vear ended 31 December 2019 2019 2018 R R Revenue from sales 540 000 480 000 Cost of Sales (360 000) (318 000) Opening Inventory 42 000 30 000 Purchases 390 000 330 000 Goods available for sale 432 000 360 000 Closing Inventory (72 000) (42 000) Gross Profit 180 000 162 000 Selling and distribution expenses (37 000) (36 000) Administration expenses (72 000) (54 000) Interest on loan (3 000) (3 000) Profit before taxation 68 000 69 000 Taxation paid (20 400) (20 700) Profit for the year 47 600 48 300 Other comprehensive income Nil Nil Total comprehensive income for the year 47 600 48 300 Hunter Limited Statement of changes in equity for the year ended 31 December 2019 Ordinary Retained Preference Total Share capital earnings share capital Balance at 1 January 2018 120 000 12 000 60 000 192 000 Total comprehensive income 48 300 48 300 Preference dividends paid (6 000) (6 000) Ordinary dividends declared (24 000) (24 000) Balance at 31 December 2018 120 000 30 300 60 000 210 300 Total comprehensive income 47 600 47 600

The annual financial statements of Hunter Ltd for the financial years ended 31 December 2018 and 2019 are presented below. Hunter Limited Statement of profit or loss and other comprehensive income for the vear ended 31 December 2019 2019 2018 R R Revenue from sales 540 000 480 000 Cost of Sales (360 000) (318 000) Opening Inventory 42 000 30 000 Purchases 390 000 330 000 Goods available for sale 432 000 360 000 Closing Inventory (72 000) (42 000) Gross Profit 180 000 162 000 Selling and distribution expenses (37 000) (36 000) Administration expenses (72 000) (54 000) Interest on loan (3 000) (3 000) Profit before taxation 68 000 69 000 Taxation paid (20 400) (20 700) Profit for the year 47 600 48 300 Other comprehensive income Nil Nil Total comprehensive income for the year 47 600 48 300 Hunter Limited Statement of changes in equity for the year ended 31 December 2019 Ordinary Retained Preference Total Share capital earnings share capital Balance at 1 January 2018 120 000 12 000 60 000 192 000 Total comprehensive income 48 300 48 300 Preference dividends paid (6 000) (6 000) Ordinary dividends declared (24 000) (24 000) Balance at 31 December 2018 120 000 30 300 60 000 210 300 Total comprehensive income 47 600 47 600

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Evaluate the company's perfomance and position using financial ratio analysis 

The annual financial statements of Hunter Ltd for the financial years ended 31 December 2018 and 2019 are presented below. Hunter Limited Statement of profit or loss and other comprehensive income for the vear ended 31 December 2019 2019 2018 R R Revenue from sales 540 000 480 000 Cost of Sales (360 000) (318 000) Opening Inventory 42 000 30 000 Purchases 390 000 330 000 Goods available for sale 432 000 360 000 Closing Inventory (72 000) (42 000) Gross Profit 180 000 162 000 Selling and distribution expenses (37 000) (36 000) Administration expenses (72 000) (54 000) Interest on loan (3 000) (3 000) Profit before taxation 68 000 69 000 Taxation paid (20 400) (20 700) Profit for the year 47 600 48 300 Other comprehensive income Nil Nil Total comprehensive income for the year 47 600 48 300 Hunter Limited Statement of changes in equity for the year ended 31 December 2019 Ordinary Retained Preference Total Share capital earnings share capital Balance at 1 January 2018 120 000 12 000 60 000 192 000 Total comprehensive income 48 300 48 300 Preference dividends paid (6 000) (6 000) Ordinary dividends declared (24 000) (24 000) Balance at 31 December 2018 120 000 30 300 60 000 210 300 Total comprehensive income 47 600 47 600
Transcribed Image Text:The annual financial statements of Hunter Ltd for the financial years ended 31 December 2018 and 2019 are presented below. Hunter Limited Statement of profit or loss and other comprehensive income for the vear ended 31 December 2019 2019 2018 R R Revenue from sales 540 000 480 000 Cost of Sales (360 000) (318 000) Opening Inventory 42 000 30 000 Purchases 390 000 330 000 Goods available for sale 432 000 360 000 Closing Inventory (72 000) (42 000) Gross Profit 180 000 162 000 Selling and distribution expenses (37 000) (36 000) Administration expenses (72 000) (54 000) Interest on loan (3 000) (3 000) Profit before taxation 68 000 69 000 Taxation paid (20 400) (20 700) Profit for the year 47 600 48 300 Other comprehensive income Nil Nil Total comprehensive income for the year 47 600 48 300 Hunter Limited Statement of changes in equity for the year ended 31 December 2019 Ordinary Retained Preference Total Share capital earnings share capital Balance at 1 January 2018 120 000 12 000 60 000 192 000 Total comprehensive income 48 300 48 300 Preference dividends paid (6 000) (6 000) Ordinary dividends declared (24 000) (24 000) Balance at 31 December 2018 120 000 30 300 60 000 210 300 Total comprehensive income 47 600 47 600
Preference dividends paid (6 000) (6 000) Ordinary dividends declared (15 000) (15 000) Balance at 31 December 2019 120 000 56 900 60 000 236 900 Hunter Limited Statement of financial position as at 31 December 2019 R Note 2019 2018 Non-current assets 258 000 264 000 Property, plant and equipment 1 258 000 264 000 Current assets 257 000 111 000 Inventory 72 000 42 000 Trade Debtors 182 000 60 000 Bank 3 000 9 000 515 000 375 000 Equity 236 900 210 300 Share capital 2 120 000 120 000 Retained earnings 56 900 30 300 Preference share capital 2 60 000 60 000 Non-current liabilities 60 000 60 000 5 % Debentures 60 000 60 000 Current liabilities 218 100 104 700 Trade Creditors 182 700 60 000 Taxation payable 20 400 20 700 Shareholders for dividends 15 000 24 000 515 000 375 000 Additional Information and Notes: (1) All purchases and sales are made on credit terms. (2) Trade debtors at 31 December 2017 amounted to R140 000. 4 Required: Using the information provided above evaluate the company's performance and position using financial ratio analysis.
Transcribed Image Text:Preference dividends paid (6 000) (6 000) Ordinary dividends declared (15 000) (15 000) Balance at 31 December 2019 120 000 56 900 60 000 236 900 Hunter Limited Statement of financial position as at 31 December 2019 R Note 2019 2018 Non-current assets 258 000 264 000 Property, plant and equipment 1 258 000 264 000 Current assets 257 000 111 000 Inventory 72 000 42 000 Trade Debtors 182 000 60 000 Bank 3 000 9 000 515 000 375 000 Equity 236 900 210 300 Share capital 2 120 000 120 000 Retained earnings 56 900 30 300 Preference share capital 2 60 000 60 000 Non-current liabilities 60 000 60 000 5 % Debentures 60 000 60 000 Current liabilities 218 100 104 700 Trade Creditors 182 700 60 000 Taxation payable 20 400 20 700 Shareholders for dividends 15 000 24 000 515 000 375 000 Additional Information and Notes: (1) All purchases and sales are made on credit terms. (2) Trade debtors at 31 December 2017 amounted to R140 000. 4 Required: Using the information provided above evaluate the company's performance and position using financial ratio analysis.
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