Homework Help is Here – Start Your Trial Now!
Business
Finance
years

years

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
See similar textbooks
icon
Related questions
Question

Compare and contrast the company's performance for the years 2019 and 2020

A C K Q 2 3 A) 2019 INCOME STATEMENT FOR THE YEARS ENDING 31 AUGUST 2020 4 FORMULA USED 2020 2019 i) GROSS MARGIN PROFIT 975,000-460,000 x100 FORMULA USED 5 REVENUE 6 COST OF SALES 7 GROSS PROFIT 8 TOTAL EXPENSES 9 NET PROFIT £950,000.00 £975,000.00 52,82% GROSS MARGIN PROFIT 950,000-455,000 x100 95.20% 975,000 950,000 £ 455,000.00 £ 495,000.00 £ 320,000.00 £460,000.00 £515,000.00 ii) NET PROFIT MARGIN 205,000 x100 £310,000.00 21% NET PROFIT MARGIN 175,000 x100 18,42% 975,000 £175,000.00 £ 205,000.00 950,000 10 iii) CURRENT RATIOS 85,000 30,000 11 STATEMENT OF FINANCIAL POSITION AS AT 31 AUGUST 2,83 CURRENT RATIOS 82,000 30,000 2,83 12 13 2020 2019 iv) QUICK RATIOS 85,000-20,000 2,16 QUICK RATIOS 14 NON-CURRENT ASSETS 15 CURRENT ASSETS 82,000-22,000 40,000 £ 70,000.00 £65,000.00 1,5 30,000 16 CASH AT THE BANK £ 45,000.00 £ 22,000.00 £ 15,000.00 £ 82,000.00 £ 152,000.00 £23,000.00 £ 55,000.00 v) TRADE RECEIVABLES DAYS 10,000 x365 3,74 17 TRADE RECEIVABLES DAYS 15,000 x365 5,73 INVENTORY £20,000.00 £ 10,000.00 £ 85,000.00 975,000 950,000 18 TRADE RECEIVABLES 19 TOTAL CURRENT ASSETS vi) TRADE PAYABLES 30,000 x365 23,80 TRADE PAYABLES 40,000 x365 455,000 32,08 20 TOTAL ASSETS £150,000.00 460,000 21 NON CURRENT LIABILITIES 22 CURRENT LIABILITIES £26,000.00 vii) INVENTORY TURNOVER 460,000 455,000 22,000 23 INVENTORY TURNOVER 20,6 23 TRADE PAYABLES £40,000.00 £ 63,000.00 £ 89,000.00 £30,000.00 RATIOS 20,000 RATIOS 24 TOTAL LIABILITIES 25 NET ASSETS £56,000.00 £ 94,000.00 26 B) 27 EQUITY £ 200,000.00 £ 205,000.00 28 SHARE CAPITAL £200,000.00 29 £ 175,000.00 30 TOTAL EQUITY £89,000.00 £94,000.00 31 32 33 34 35 1. B) TRIAL BALANCE 2. A) PROFIT AND LOSS 3.A) 田 B.
Transcribed Image Text:A C K Q 2 3 A) 2019 INCOME STATEMENT FOR THE YEARS ENDING 31 AUGUST 2020 4 FORMULA USED 2020 2019 i) GROSS MARGIN PROFIT 975,000-460,000 x100 FORMULA USED 5 REVENUE 6 COST OF SALES 7 GROSS PROFIT 8 TOTAL EXPENSES 9 NET PROFIT £950,000.00 £975,000.00 52,82% GROSS MARGIN PROFIT 950,000-455,000 x100 95.20% 975,000 950,000 £ 455,000.00 £ 495,000.00 £ 320,000.00 £460,000.00 £515,000.00 ii) NET PROFIT MARGIN 205,000 x100 £310,000.00 21% NET PROFIT MARGIN 175,000 x100 18,42% 975,000 £175,000.00 £ 205,000.00 950,000 10 iii) CURRENT RATIOS 85,000 30,000 11 STATEMENT OF FINANCIAL POSITION AS AT 31 AUGUST 2,83 CURRENT RATIOS 82,000 30,000 2,83 12 13 2020 2019 iv) QUICK RATIOS 85,000-20,000 2,16 QUICK RATIOS 14 NON-CURRENT ASSETS 15 CURRENT ASSETS 82,000-22,000 40,000 £ 70,000.00 £65,000.00 1,5 30,000 16 CASH AT THE BANK £ 45,000.00 £ 22,000.00 £ 15,000.00 £ 82,000.00 £ 152,000.00 £23,000.00 £ 55,000.00 v) TRADE RECEIVABLES DAYS 10,000 x365 3,74 17 TRADE RECEIVABLES DAYS 15,000 x365 5,73 INVENTORY £20,000.00 £ 10,000.00 £ 85,000.00 975,000 950,000 18 TRADE RECEIVABLES 19 TOTAL CURRENT ASSETS vi) TRADE PAYABLES 30,000 x365 23,80 TRADE PAYABLES 40,000 x365 455,000 32,08 20 TOTAL ASSETS £150,000.00 460,000 21 NON CURRENT LIABILITIES 22 CURRENT LIABILITIES £26,000.00 vii) INVENTORY TURNOVER 460,000 455,000 22,000 23 INVENTORY TURNOVER 20,6 23 TRADE PAYABLES £40,000.00 £ 63,000.00 £ 89,000.00 £30,000.00 RATIOS 20,000 RATIOS 24 TOTAL LIABILITIES 25 NET ASSETS £56,000.00 £ 94,000.00 26 B) 27 EQUITY £ 200,000.00 £ 205,000.00 28 SHARE CAPITAL £200,000.00 29 £ 175,000.00 30 TOTAL EQUITY £89,000.00 £94,000.00 31 32 33 34 35 1. B) TRIAL BALANCE 2. A) PROFIT AND LOSS 3.A) 田 B.
Expert Solution
steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Analytical Techniques
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.
Similar questions
  • SEE MORE QUESTIONS
Recommended textbooks for you
Essentials Of Investments
Essentials Of Investments
Finance
ISBN:
9781260013924
Author:
Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:
Mcgraw-hill Education,
FUNDAMENTALS OF CORPORATE FINANCE
FUNDAMENTALS OF CORPORATE FINANCE
Finance
ISBN:
9781260013962
Author:
BREALEY
Publisher:
RENT MCG
Financial Management: Theory & Practice
Financial Management: Theory & Practice
Finance
ISBN:
9781337909730
Author:
Brigham
Publisher:
Cengage
Foundations Of Finance
Foundations Of Finance
Finance
ISBN:
9780134897264
Author:
KEOWN, Arthur J., Martin, John D., PETTY, J. William
Publisher:
Pearson,
Fundamentals of Financial Management (MindTap Cou…
Fundamentals of Financial Management (MindTap Cou…
Finance
ISBN:
9781337395250
Author:
Eugene F. Brigham, Joel F. Houston
Publisher:
Cengage Learning
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Corporate Finance (The Mcgraw-hill/Irwin Series i…
Finance
ISBN:
9780077861759
Author:
Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS