Use the statement of financial position as at 31 December 2022, statement of comprehensive income for the year ended 31 December 2022 and additional information for 2022 (related to dividends and shares) to calculate the ratio (expressed to two decimal places) that would reflect each of the following:1. The extent to which the claims of the short-term creditors are covered by assets that can be translated into cash in the short term2. The extent to which long-term debt is covered by shareholders’ funds3. The amount of funds available relative to sales, to pay the company’s expenses other than its cost of sales (expressed as a percentage)4. The distributions during the period allocated to each ordinary share issued5. An indication of the percentage of the profit that has been put back into the company6. The ratio of a company's current stock price to its earnings per share CAPRI LIMITEDSTATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2022ASSETSNon-current assetsProperty, plant and equipment (cost)Accumulated depreciationInvestmentsCurrent assetsInventoryAccounts receivableBankEQUITY AND LIABILITIESEquityOrdinary Share CapitalRetained IncomeNon-current liabilitiesLoanCurrent liabilitiesAccounts payableDividends payableR5 040 0004 980 000(1 260 000)1 320 0006 120 0002 100 0002 460 0001 560 00011 160 0007 500 0005 118 0002 382 0002 700 0002 700 000960 000576 000384 00011 160 000 CAPRI LIMITEDSTATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER 2022SalesCost of salesGross profitOperating expensesOperating profitInterest expenseInterest incomeProfit before taxCompany taxProfit after taxR8 400 000(5 304 000)3 096 000(1 596 000)1 500 000(324 000)120 0001 296 000(390 000)906 000

Name: Use the statement of financial position as at 31 December 2022, statem
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Description: Use the statement of financial position as at 31 December 2022, statement of comprehensive income for the year ended 31 December 2022 and additional information for 2022 (related to dividends and shares) to calculate the ratio (expressed to two decim

Ratio Analysis: It is a quantitative method of gaining insight into a company's liquidity,…

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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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Use the statement of financial position as at 31 December 2022, statement of comprehensive income for the year ended 31 December 2022 and additional information for 2022 (related to dividends and shares) to calculate the ratio (expressed to two decimal places) that would reflect each of the following:

1. The extent to which the claims of the short-term creditors are covered by assets that can be translated into cash in the short term
2. The extent to which long-term debt is covered by shareholders’ funds
3. The amount of funds available relative to sales, to pay the company’s expenses other than its cost of sales (expressed as a percentage)
4. The distributions during the period allocated to each ordinary share issued
5. An indication of the percentage of the profit that has been put back into the company

6. The ratio of a company's current stock price to its earnings per share

CAPRI LIMITED
STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2022
ASSETS
Non-current assets
Property, plant and equipment (cost)
Accumulated depreciation
Investments
Current assets
Inventory
Accounts receivable
Bank
EQUITY AND LIABILITIES
Equity
Ordinary Share Capital
Retained Income
Non-current liabilities
Loan
Current liabilities
Accounts payable
Dividends payable
R
5 040 000
4 980 000
(1 260 000)
1 320 000
6 120 000
2 100 000
2 460 000
1 560 000
11 160 000
7 500 000
5 118 000
2 382 000
2 700 000
2 700 000
960 000
576 000
384 000
11 160 000

CAPRI LIMITED
STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER 2022
Sales
Cost of sales
Gross profit
Operating expenses
Operating profit
Interest expense
Interest income
Profit before tax
Company tax
Profit after tax
R
8 400 000
(5 304 000)
3 096 000
(1 596 000)
1 500 000
(324 000)
120 000
1 296 000
(390 000)
906 000

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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