Two companies Binky and Smokey trade in the same market. Their financial statements for the year ended31 October 20Xx6 are summarised below:STATEMENTS OF PROFIT OR LOSS FOR THE YEAR ENDED 31 OCTOBER 20X6BinkySmokeyS000$000$00$000Sales revenue284305Cost of sales(155)(151)154Gross profitExpensesAdministrativeSelling and distributionDepreciationLoan note interest1292437355312(68)(107)Net profit6147STATEMENTS OF FINANCIAL POSITION AS AT 31 OCTOBER 20X6Binky$000SmokeyAssetsS000$000$000Non-current assetsAt cost320515Accumulated depreciation(75)(96)245419Current assetsInventoryReceivables912934675Bank6415201383446802Equity and liabilitiesShare capital and reservesShare capitalRetained carnings15025010817710% Loan noteCurrent liabilitiesTotal equity and liabilities50188446802Task 1Complete the following table to show the main ratios for Binky and SmokeyRatioGross profit %BinkyFormulaSmokcyNet profit %Asset turnoverCurrent ratioQuick ratioReccivables collectionperiod

To determine the required ratios, we will be needing the following information: Gross Profit:Binky:…

Two companies Binky and Smokey trade in the same market. Their financial statements for the year ended 31 October 20x6 are summarised below: STATEMENTS OF PROFIT OR LOSS FOR THE YEAR ENDED 31 OCTOBER 20x6 Binky Smokey S000 S000 $000 284 $000 Sales revenue 305 (151) 154 Cost of sales (155) 129 Gross profit Expenses Administrative Selling and distribution Depreciation Loan note interest (68) 61 STATEMENTS OF FINANCIAL POSITION AS AT 31 OCTOBER 20X6 (107) Net profit Binky Smokey Assets Non-current assets s00 $000 $000 $000 At cost 320 (75) 515 Accumulated depreciation (96) 245 419 Current assets Inventory Receivables Bank 91 293 46 64 75 383 Equity and liabilities Share capital and reserves Share capital Retained eamings 10% Loan note Current liabilities Total equity and liabilities 150 250 108 177 188 325 802 Task 1 Complete the following table to show the main ratios for Binky and Smokey Ratio Gross profit Net profit Formula Binky Smokey Asset turnover Current ratio Quick ratio Receivables collection period

Two companies Binky and Smokey trade in the same market. Their financial statements for the year ended 31 October 20x6 are summarised below: STATEMENTS OF PROFIT OR LOSS FOR THE YEAR ENDED 31 OCTOBER 20x6 Binky Smokey S000 S000 $000 284 $000 Sales revenue 305 (151) 154 Cost of sales (155) 129 Gross profit Expenses Administrative Selling and distribution Depreciation Loan note interest (68) 61 STATEMENTS OF FINANCIAL POSITION AS AT 31 OCTOBER 20X6 (107) Net profit Binky Smokey Assets Non-current assets s00 $000 $000 $000 At cost 320 (75) 515 Accumulated depreciation (96) 245 419 Current assets Inventory Receivables Bank 91 293 46 64 75 383 Equity and liabilities Share capital and reserves Share capital Retained eamings 10% Loan note Current liabilities Total equity and liabilities 150 250 108 177 188 325 802 Task 1 Complete the following table to show the main ratios for Binky and Smokey Ratio Gross profit Net profit Formula Binky Smokey Asset turnover Current ratio Quick ratio Receivables collection period

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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