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This is after charging: Depreciation 360 280 Loan note interest 80 60 Interest on bank overdraft 15 9 Audit fees 12 10 Statement of financial position as at 30 April .... 2019 2018 000.$ 000.$ 000.$ 000.$ Assets Non -current assets 1850 1430 Current assets Inventory Receivables 640 490 1230 1080 Cash TOTAL ASSETS 80 1950 120 1690 3800 3120 EQUITY & LIABILITIES Equity Ordinary share capital Retained earnings Non-current liabilities 800 800 1310 2110 930 1730 10% loan stock 800 600 Current liabilities Bank overdraft 110 80 Payables Taxation 750 690 30 890 20 790 3800 3120 The following figures have been extracted from the records of D & G Superstores Ltd for the previous year as well as the relative industry averages: D&G 30 April 2018 Industry Average 30 April 2018 18.50% ROCE (capital employed = equity + debentures) Profit/sales Asset turnover Current ratio Quick ratio Gross profit margin Accounts receivable collection period Accounts payable payment period Inventory turnover (times) Gearing 16.70% 3.90% 4.73% 3.91 4.29 2.0 1.9 1.42 1.27 30.00% 35.23% 40 days 37 days 52 days 49 days 13.90 18.30 26.37% 32.71% You are required to: 1) Discuss the use of ratios in analyzing performance. 2) Calculate comparable ratios (to 2 decimal places) for Dandy & Grandee Superstores Ltd for the year ended 30 April 2019. Show all calculations.

This is after charging: Depreciation 360 280 Loan note interest 80 60 Interest on bank overdraft 15 9 Audit fees 12 10 Statement of financial position as at 30 April .... 2019 2018 000.$ 000.$ 000.$ 000.$ Assets Non -current assets 1850 1430 Current assets Inventory Receivables 640 490 1230 1080 Cash TOTAL ASSETS 80 1950 120 1690 3800 3120 EQUITY & LIABILITIES Equity Ordinary share capital Retained earnings Non-current liabilities 800 800 1310 2110 930 1730 10% loan stock 800 600 Current liabilities Bank overdraft 110 80 Payables Taxation 750 690 30 890 20 790 3800 3120 The following figures have been extracted from the records of D & G Superstores Ltd for the previous year as well as the relative industry averages: D&G 30 April 2018 Industry Average 30 April 2018 18.50% ROCE (capital employed = equity + debentures) Profit/sales Asset turnover Current ratio Quick ratio Gross profit margin Accounts receivable collection period Accounts payable payment period Inventory turnover (times) Gearing 16.70% 3.90% 4.73% 3.91 4.29 2.0 1.9 1.42 1.27 30.00% 35.23% 40 days 37 days 52 days 49 days 13.90 18.30 26.37% 32.71% You are required to: 1) Discuss the use of ratios in analyzing performance. 2) Calculate comparable ratios (to 2 decimal places) for Dandy & Grandee Superstores Ltd for the year ended 30 April 2019. Show all calculations.

Managerial Accounting: The Cornerstone of Business Decision-Making
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 50E: Juroe Company provided the following income statement for last year: Juroes balance sheet as of...
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This is after charging: Depreciation 360 280 Loan note interest 80 60 Interest on bank overdraft 15 Audit fees 12 10 Statement of financial position as at 30 April .... 2019 2018 $*000 $'000 000.$ 000.$ Assets Non -current assets 1850 1430 Current assets Inventory 640 490 Receivables 1230 1080 Cash 80 1950 120 1690 TOTAL ASSETS 3800 3120 EQUITY & LIABILITIES Equity Ordinary share capital Retained earnings 800 800 1310 2110 930 1730 Non-current liabilities 10% loạn stock 800 600 Current liabilities Bank overdraft 110 80 Payables Taxation 750 690 30 890 20 790 3800 3120 The following figures have been extracted from the records of D & G Superstores Ltd for the previous year as well as the relative industry averages: D&G 30 April 2018 16.70% 3.90% 4.29 Industry Average 30 April 2018 ROCE (capital employed = equity + debentures) Profit/sales 18.50% 4.73% 3.91 Asset turnover 2.0 Current ratio Quick ratio Gross profit margin Accounts receivable collection period Accounts payable payment period 1.9 1.27 35.23% 1.42 30.00% 40 days 37 days 52 days 49 days Inventory turnover (times) 13.90 18.30 Gearing 26.37% 32.71% You are required to: 1) Discuss the use of ratios in analyzing performance. 2) Calculate comparable ratios (to 2 decimal places) for Dandy & Grandee Superstores Ltd for the year ended 30 April 2019. Show all calculations. 3) Write a report to the board of directors of Dandy & Grandee Superstores Ltd. analyzing the performance of the company when compared with the previous year and against industry average. 4) Advise the directors of Dandy & Grandee Superstores Ltd of strategies that can be implemented to improve the performance of the company.
Transcribed Image Text:This is after charging: Depreciation 360 280 Loan note interest 80 60 Interest on bank overdraft 15 Audit fees 12 10 Statement of financial position as at 30 April .... 2019 2018 $*000 $'000 000.$ 000.$ Assets Non -current assets 1850 1430 Current assets Inventory 640 490 Receivables 1230 1080 Cash 80 1950 120 1690 TOTAL ASSETS 3800 3120 EQUITY & LIABILITIES Equity Ordinary share capital Retained earnings 800 800 1310 2110 930 1730 Non-current liabilities 10% loạn stock 800 600 Current liabilities Bank overdraft 110 80 Payables Taxation 750 690 30 890 20 790 3800 3120 The following figures have been extracted from the records of D & G Superstores Ltd for the previous year as well as the relative industry averages: D&G 30 April 2018 16.70% 3.90% 4.29 Industry Average 30 April 2018 ROCE (capital employed = equity + debentures) Profit/sales 18.50% 4.73% 3.91 Asset turnover 2.0 Current ratio Quick ratio Gross profit margin Accounts receivable collection period Accounts payable payment period 1.9 1.27 35.23% 1.42 30.00% 40 days 37 days 52 days 49 days Inventory turnover (times) 13.90 18.30 Gearing 26.37% 32.71% You are required to: 1) Discuss the use of ratios in analyzing performance. 2) Calculate comparable ratios (to 2 decimal places) for Dandy & Grandee Superstores Ltd for the year ended 30 April 2019. Show all calculations. 3) Write a report to the board of directors of Dandy & Grandee Superstores Ltd. analyzing the performance of the company when compared with the previous year and against industry average. 4) Advise the directors of Dandy & Grandee Superstores Ltd of strategies that can be implemented to improve the performance of the company.
INSTRUCTIONS – The following information has been extracted from the financial statements of Dandy & Grandee Superstores Ltd. Extracts from the Income Statements for year ended 30 April ...... 2019 2018 S'000|s'000 Sales Cost of sales Net profit before tax This is after charging: 11,200 9,750 8,460 6,825 320 465 Depreciation Loan note interest Interest on bank overdraft Audit fees Statement of financial position as at 30 April .... 360 280 80 60 15 9 12 10 2019 2018 000.$ $'000 $'000 000.$ Assets Non -current assets 1850 1430 Current assets Inventory Receivables 640 490 1230 1080 Cash 80 1950 120 1690 TOTAL ASSETS 3800 3120 EQUITY & LIABILITIES Equity Ordinary share capital Retained earnings Non-current liabilities 800 800 1310 2110 930 1730 10% loan stock 800 600 Current liabilities Bank overdraft 110 80 Payables 750 690 Taxation 30 890 20 790 3800 3120 The following figures have been extracted from the records of D & G Superstores Ltd for the previous year as well as the relative industry averages: D&G 30 April 2018 16.70% Industry Average 30 April 2018 18.50% 4.73% ROCE (capital employed = equity + debentures) Profit/sales 3.90% Asset turnover 4.29 3.91 2.0 |Current ratio Ouick ratio 1.9 1.42 Gross profit margin Accounts receivable collection period Accounts payable payment period Inventory turnover (times) Gearing 1.27 35.23% 52 days 49 days 30.00% 40 days 37 days 13.90 18.30 26.37% 32.71% You are required to: 1) Discuss the use of ratios in analyzing performance.
Transcribed Image Text:INSTRUCTIONS – The following information has been extracted from the financial statements of Dandy & Grandee Superstores Ltd. Extracts from the Income Statements for year ended 30 April ...... 2019 2018 S'000|s'000 Sales Cost of sales Net profit before tax This is after charging: 11,200 9,750 8,460 6,825 320 465 Depreciation Loan note interest Interest on bank overdraft Audit fees Statement of financial position as at 30 April .... 360 280 80 60 15 9 12 10 2019 2018 000.$ $'000 $'000 000.$ Assets Non -current assets 1850 1430 Current assets Inventory Receivables 640 490 1230 1080 Cash 80 1950 120 1690 TOTAL ASSETS 3800 3120 EQUITY & LIABILITIES Equity Ordinary share capital Retained earnings Non-current liabilities 800 800 1310 2110 930 1730 10% loan stock 800 600 Current liabilities Bank overdraft 110 80 Payables 750 690 Taxation 30 890 20 790 3800 3120 The following figures have been extracted from the records of D & G Superstores Ltd for the previous year as well as the relative industry averages: D&G 30 April 2018 16.70% Industry Average 30 April 2018 18.50% 4.73% ROCE (capital employed = equity + debentures) Profit/sales 3.90% Asset turnover 4.29 3.91 2.0 |Current ratio Ouick ratio 1.9 1.42 Gross profit margin Accounts receivable collection period Accounts payable payment period Inventory turnover (times) Gearing 1.27 35.23% 52 days 49 days 30.00% 40 days 37 days 13.90 18.30 26.37% 32.71% You are required to: 1) Discuss the use of ratios in analyzing performance.
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