The financial statements of Stone Limited for the most recent two years is shown below. Extract from statement of profit or loss for the year ended 30 April 2019 2018 £'000 £'000 224,000 195,000 (169,200) (136,500) 54,800 58,500 (32,700) (38,040) (10,900) (12,680) (1,900) (1.380) 9,300 6,400 Revenue Cost of sales Gross profit Administrative costs Distribution cost Finance cost-loan note interest Statement of financial position as at 30 April. Assets Non-current assets Current assets: Inventory Trade receivables Cash balance Total assets Equity and liabilities Ordinary share capital Retained earnings 2019 £'000 12,800 24,600 1,600 £'000 37,000 39.000 76,000 16,000 26.200 42,200 £'000 2018 9,800 21,600 2,400 £'000 28,600 33.800 62.400 16,000 18.600 34,600

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Calculate the comparative ratio(s) for Stone limited for the year ended 30
April 2019. (to two decimal places where appropriate). 

Non-current liabilities:
10% loan notes
Current liabilities:
Bank overdraft
Trade payables
Taxation
2,200
15,000
600
Total equity and liabilities
The ratios for Stone Limited have been calculated
financial statement and latest industry average ratios.
Net profit margin
ROCE (Capital employed equity +loan notes)
Asset turnover
Current ratio
Quick ratio
Gross profit margin
Account receivables collection period
Account payables payment period
Inventory turnover (Times)
Gearing ratio
16,000
1,600
13,800
400
17.800
76,000
below based on the previous year
Stone Ltd
30 April 2018
3.99%
16.69%
4.19 times
2.14:1
1.52:1
30.0%
40 days
17 days
13.9times
25.75%
12,000
15,800
62,400
Industry
Average
4.73%
18.50%
3.91times
1.90:1
1.27:1
35.23%
52days
49 days
18.3times
32.71%
Transcribed Image Text:Non-current liabilities: 10% loan notes Current liabilities: Bank overdraft Trade payables Taxation 2,200 15,000 600 Total equity and liabilities The ratios for Stone Limited have been calculated financial statement and latest industry average ratios. Net profit margin ROCE (Capital employed equity +loan notes) Asset turnover Current ratio Quick ratio Gross profit margin Account receivables collection period Account payables payment period Inventory turnover (Times) Gearing ratio 16,000 1,600 13,800 400 17.800 76,000 below based on the previous year Stone Ltd 30 April 2018 3.99% 16.69% 4.19 times 2.14:1 1.52:1 30.0% 40 days 17 days 13.9times 25.75% 12,000 15,800 62,400 Industry Average 4.73% 18.50% 3.91times 1.90:1 1.27:1 35.23% 52days 49 days 18.3times 32.71%
The financial statements of Stone Limited for the most recent two years is shown below.
Extract from statement of profit or loss for the year ended 30 April
2019
2018
£'000
£'000
224,000
195,000
(169,200)
(136,500)
54,800
58,500
(32,700)
(38,040)
(10,900)
(12,680)
(1,900)
(1,380)
9.300
6.400
Revenue
Cost of sales
Gross profit
Administrative costs
Distribution cost
Finance cost -loan note interest
Statement of financial position as at 30 April.
Assets
Non-current assets
Current assets:
Inventory
Trade receivables
Cash balance
Total assets
Equity and liabilities
Ordinary share capital
Retained earnings
£'000
2019
12,800
24,600
1.600
£000
37,000
39,000
76.000
16,000
26.200
42,200
2018
2000 £'000
28,600
9,800
21,600
2,400
33,800
62.400
16,000
18.600
34,600
Transcribed Image Text:The financial statements of Stone Limited for the most recent two years is shown below. Extract from statement of profit or loss for the year ended 30 April 2019 2018 £'000 £'000 224,000 195,000 (169,200) (136,500) 54,800 58,500 (32,700) (38,040) (10,900) (12,680) (1,900) (1,380) 9.300 6.400 Revenue Cost of sales Gross profit Administrative costs Distribution cost Finance cost -loan note interest Statement of financial position as at 30 April. Assets Non-current assets Current assets: Inventory Trade receivables Cash balance Total assets Equity and liabilities Ordinary share capital Retained earnings £'000 2019 12,800 24,600 1.600 £000 37,000 39,000 76.000 16,000 26.200 42,200 2018 2000 £'000 28,600 9,800 21,600 2,400 33,800 62.400 16,000 18.600 34,600
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