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 20232023 2022Revenue 5 330 761 5 420 595Cost of sales (4 141 605) (4 167 850)Gross Profit 1 189 156 1 252 746Other income 45 191 52 617Loss 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 366Profit 226 163 207 982Finance income 103 110Finance cost (110 036) (105 005)Profit before tax 116 230 105 005Taxation (34 336) (6 076)Profit for the year 81 894 98 929 TKC Limited Statement of Financial position as at 31 December 20232023 2022Non-current assetsProperty and equipment 1 067 576 1 218 626Goodwill 64 477 65 735Investments in new projects 8 136 10 2701 160 189 1 294 631Current assetsInventories 340 692 305 476Related entities 5 310 5 414Advances and deposits 44 298 39 095Trade Receivables 63 810 63 645Tax receivables 10 094 9 887Restricted cash 5 143 12 845Cash and cash equivalents 73 920 60 727TOTAL ASSETS 1 703 456 1 840 801Equity and LiabilitiesShare capital (P1.00 each) 906 196 906 196Adjustment (29 616) (29 616)Inflation reserve 192 930 158 920Forex translation (473 964) (396 412)Retained loss (938 206) (1 006 538)Long Term Borrowing 1 207 108 984 596Current LiabilitiesTrade payablesPayments to related partiesCurrent portion of long-term loanLease liabilitiesTaxationBankOther Liabilities568 46143 73486 129149 44529 48367 525571 22582 794192 289153 1167 248148 788167 799Total equity and liabilities 1 703 456 1 840 801Additional 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 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
Taxation (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
Goodwill 64 477 65 735
Investments in new projects 8 136 10 270
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
Payments to related parties
Current portion of long-term loan
Lease liabilities
Taxation
Bank
Other Liabilities
568 461
43 734
86 129
149 445
29 483
67 525
571 225
82 794
192 289
153 116
7 248
148 788
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.
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