Using two measures of liquidity (current ratio and quick or acid test ratio), discuss whether there were significant differences in performance between the two companies and whether there were warning signs of JBB Sports' potential failure Balance Sheetas atNon-current assetsIntangible assetsProperty, plant and equipmentInvestments in associated undertakings & jointventuresOther assetsTotal non-current assetsCurrent assetsInventoriesTrade receivablesOther receivablesCash and cash equivalentsTotal current assetsTotal assetsCurrent liabilitiesBorrowingsTrade payablesOther payablesTotal current liabilitiesNon-current liabilitiesBorrowingsOther payablesTotal non-current liabilitiesTotal liabilitiesNet assetsCapital and reservesShare capitalShare premium accountOther reservesRetained earningsTotal equityAverage number of employeesJJB Sports JJB Sports Sports DirectpleplePLCPLC29-Jan-1230-Jan-11 20-Apr-12 24-Apr-11£'000£'000£'000£'00024,20146,09170,29247,3029836,8094,63859.732130,02433,97164,85934,824258,2211,86098,83052,7254488,6295,859(263,931)30.9745,108(-)(9,303)(17,712) (38,471) (155,468)(35,423) (36,662)(172,940)(53,135) (75,133)(337,711)225,150313,02367,661485,277166,491 1,132,179(99,050) (122,420) (660,294)(30,974) (44,071)(471,885)29,47079,259646,90232,542174,055276316,80044,12239,75584,600(162,802)44,0716,701(15,915)(24,678) (214,587) (196,182)(30,000) (22,609)(107,996)(102,701)(45.915) (47.287) (322,583)(298,883)(585,055)(331,135)SportsDirect600,431471,885205,050236,09712,14538,34766,540546,034217,93847,59444,11160,513370,156916,190(13,219)(95,700)(177,253)(286,172)64,060874,300(1,066,906) (1,048,151)440,931331,13564,055874,30010,312 3. The DataConsolidated Income StatementFor period endedRevenueCost of salesGross profitSelling, distribution & administrativeexpensesOther operating incomeOperating profit (loss)Investment income (costs)Finance incomeFinance costsFinancial instrument adjustment & issuecostsShare of profit (loss) of associatedundertakings & joint venturesProfit (loss) before taxJJB Sports JJB Sports Sports Direct Sports DirectpleplePLC29-Jan-12£'00024-Apr-11£'000284,206(182,722)101,484(566)PLC30-Jan-11 20-Apr-12£'000£'000(160,408) (200,578) (596,383)2,6821,8485,283153,176(56,242) (73,856)113512(5,800)6,426(8,481)2,774362,8941,835,756(238,020) (1,091,480)124,874744,276(1,162)1,097558(53,921) (73,409) 145,8791,599,237(940,330)658,907(527,273)5,289136,923(9,481)2,560(8,953)121,041

Current Ratio:The current ratio is a financial metric used to assess a company's short-term…

Using two measures of liquidity (current ratio and quick or acid test ratio), discuss whether there were significant differences in performance between the two companies and whether there were warning signs of JBB Sports' potential failure

Using two measures of liquidity (current ratio and quick or acid test ratio), discuss whether there were significant differences in performance between the two companies and whether there were warning signs of JBB Sports' potential failure

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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