You have been provided with financial statements for TKC limited for the year ending 31December 2023. All figures are Botswana PulaTKC Limited Statement of Income for the year ended 2023 2023 2022 Revenue 5 330 761 5 420 595 Cost of sales (4 141 605) (4 167 850) Gross Profit 1 189 156 1 252 746 Other income 45 191 52 617 Loss of disposal of equipment (201) (656) Impairment reversal (9 868) Changes in credit allowances 16 954 (1 412) Admin expenses (855 718) (901 870) Seling and distribution (35 119) (63 200) Other expenses (134 689) (140 741) Non-monetary translation 589 20 366 Profit 226 163 207 982 Finance income 103 110 Finance cost (110 036) (105 005) Profit before tax 116 230 105 005 Taxation (34 336) (6 076) Profit for the year 81 894 98 929 TKC Limited Statement of Financial position as at 31 December 2023 2023 2022 Non-current assets Property and equipment 1 067 576 1 218 626 Goodwill 64 477 65 735 Goodwill 8 136 10 270 Investments in new projects 1 160 189 1 294 631 Current assets Inventories 340 692 305 476 Related entities 5 310 5 414 Advances and deposits 44 298 39 095 Trade Receivables 63 810 63 645 Tax receivables 10 094 9 887 Restricted cash 5 143 12 845 Cash and cash equivalents 73 920 60 727 TOTAL ASSETS 1 703 456 1 840 801 Equity and Liabilities Share capital (P1.00 each) 906 196 906 196 Adjustment (29 616) (29 616) Inflation reserve 192 930 158 920 Forex translation (473 964) (396 412) Retained loss (938 206) (1 006 538) Long Term Borrowing 1 207 108 984 596 Current Liabilities Trade payables 568 461 571 225 Payments to related parties 43 734 82 794 Current portion of long-term loan 86 129 192 289 Lease liabilities 149 445 153 116 Taxation 29 483 7 248 Bank 67 525 148 788 Other Liabilities 167 799 Total equity and liabilities 1 703 456 1 840 801 Additional information▪ Purchases constitute 50% of cost of sales▪ Share price remain stable at BWP 0.52 per share Required:a) Analyse and evaluate the financial performance over the two-year period by usingappropriate ratios: Liquidity, Profitability, Efficiency, and Investment. b) Based on findings in (a), provide recommendations how the firm can improve its financialposition
You have been provided with financial statements for TKC limited for the year ending 31December 2023. All figures are Botswana PulaTKC Limited Statement of Income for the year ended 2023 2023 2022 Revenue 5 330 761 5 420 595 Cost of sales (4 141 605) (4 167 850) Gross Profit 1 189 156 1 252 746 Other income 45 191 52 617 Loss of disposal of equipment (201) (656) Impairment reversal (9 868) Changes in credit allowances 16 954 (1 412) Admin expenses (855 718) (901 870) Seling and distribution (35 119) (63 200) Other expenses (134 689) (140 741) Non-monetary translation 589 20 366 Profit 226 163 207 982 Finance income 103 110 Finance cost (110 036) (105 005) Profit before tax 116 230 105 005 Taxation (34 336) (6 076) Profit for the year 81 894 98 929 TKC Limited Statement of Financial position as at 31 December 2023 2023 2022 Non-current assets Property and equipment 1 067 576 1 218 626 Goodwill 64 477 65 735 Goodwill 8 136 10 270 Investments in new projects 1 160 189 1 294 631 Current assets Inventories 340 692 305 476 Related entities 5 310 5 414 Advances and deposits 44 298 39 095 Trade Receivables 63 810 63 645 Tax receivables 10 094 9 887 Restricted cash 5 143 12 845 Cash and cash equivalents 73 920 60 727 TOTAL ASSETS 1 703 456 1 840 801 Equity and Liabilities Share capital (P1.00 each) 906 196 906 196 Adjustment (29 616) (29 616) Inflation reserve 192 930 158 920 Forex translation (473 964) (396 412) Retained loss (938 206) (1 006 538) Long Term Borrowing 1 207 108 984 596 Current Liabilities Trade payables 568 461 571 225 Payments to related parties 43 734 82 794 Current portion of long-term loan 86 129 192 289 Lease liabilities 149 445 153 116 Taxation 29 483 7 248 Bank 67 525 148 788 Other Liabilities 167 799 Total equity and liabilities 1 703 456 1 840 801 Additional information▪ Purchases constitute 50% of cost of sales▪ Share price remain stable at BWP 0.52 per share Required:a) Analyse and evaluate the financial performance over the two-year period by usingappropriate ratios: Liquidity, Profitability, Efficiency, and Investment. b) Based on findings in (a), provide recommendations how the firm can improve its financialposition
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
You have been provided with financial statements for TKC limited for the year ending 31
December 2023. All figures are Botswana Pula
TKC Limited Statement of Income for the year ended 2023
2023 | 2022 | |
Revenue | 5 330 761 | 5 420 595 |
Cost of sales | (4 141 605) | (4 167 850) |
Gross Profit | 1 189 156 | 1 252 746 |
Other income | 45 191 | 52 617 |
Loss of disposal of equipment | (201) | (656) |
Impairment reversal | (9 868) | |
Changes in credit allowances | 16 954 | (1 412) |
Admin expenses | (855 718) | (901 870) |
Seling and distribution | (35 119) | (63 200) |
Other expenses | (134 689) | (140 741) |
Non-monetary translation | 589 | 20 366 |
Profit | 226 163 | 207 982 |
Finance income | 103 | 110 |
Finance cost | (110 036) | (105 005) |
Profit before tax | 116 230 | 105 005 |
(34 336) | (6 076) | |
Profit for the year | 81 894 | 98 929 |
TKC Limited
2023 | 2022 | |
Non-current assets | ||
Property and equipment | 1 067 576 | 1 218 626 |
64 477 | 65 735 | |
Goodwill | 8 136 | 10 270 |
Investments in new projects | 1 160 189 | 1 294 631 |
Current assets | ||
Inventories | 340 692 | 305 476 |
Related entities | 5 310 | 5 414 |
Advances and deposits | 44 298 | 39 095 |
Trade Receivables | 63 810 | 63 645 |
Tax receivables | 10 094 | 9 887 |
Restricted cash | 5 143 | 12 845 |
Cash and cash equivalents | 73 920 | 60 727 |
TOTAL ASSETS | 1 703 456 | 1 840 801 |
Equity and Liabilities | ||
Share capital (P1.00 each) | 906 196 | 906 196 |
Adjustment | (29 616) | (29 616) |
Inflation reserve | 192 930 | 158 920 |
Forex translation | (473 964) | (396 412) |
Retained loss | (938 206) | (1 006 538) |
Long Term Borrowing | 1 207 108 | 984 596 |
Current Liabilities | ||
Trade payables | 568 461 | 571 225 |
Payments to related parties | 43 734 | 82 794 |
Current portion of long-term loan | 86 129 | 192 289 |
Lease liabilities | 149 445 | 153 116 |
Taxation | 29 483 | 7 248 |
Bank | 67 525 | 148 788 |
Other Liabilities | 167 799 | |
Total equity and liabilities | 1 703 456 | 1 840 801 |
Additional information
▪ Purchases constitute 50% of cost of sales
▪ Share price remain stable at BWP 0.52 per share
Required:
a) Analyse and evaluate the financial performance over the two-year period by using
appropriate ratios: Liquidity, Profitability, Efficiency, and Investment.
b) Based on findings in (a), provide recommendations how the firm can improve its financial
position
AI-Generated Solution
AI-generated content may present inaccurate or offensive content that does not represent bartleby’s views.
Unlock instant AI solutions
Tap the button
to generate a solution
Recommended textbooks for you
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education