Subject: Business Finance (Profitability & Liquidity)The following requires computation and justification of your answers. (Please refer to the given picture) 3. Curve and Big Daddy Blaise are both apparel retailers offering plus-sized clothesas part of the "Rise Above Body-Shaming" movement that started on 2016. Thefinancial statements of Shannon's Curve and Big Daddy Blaise for year 2019 areas follows:Statement of Profit or Loss for the year 2019:Big Daddy BlaiseP2,000,000(230,000)1,770,000Shannon's CurveSalesP2,580,000(200,000)2,380,000(865,000)(339,000)(250,000)926,600Cost of Goods SoldGross ProfitAdministrative ExpensesSelling ExpensesFinance Cost(500,000)(256,000)(100,000)914,000Net ProfitStatement of Financial Position for the year 2019:Shannon's CurveBig Daddy BlaiseASSETSProperty, Plant and EquipmentInventoriesP3,680,000250,000800,000200,000P4,930,000P5,300,000250,000400,000300,000P6,250,000Trade ReceivablesCash and cash equivalentsTotal AssetsCAPITAL AND LIABILITIESShare CapitalRetained Profit2,500,0001,223,0001,000,000207,000P4,930,0002,500,0001,392,0002,000,000358,000P6,250,000Bank loanTrade PayablesTotal Capital and LiabilitiesWhich is better in terms of profitability and liquidity? Justify your answer.

Ratio analysis is one of the important tool of analysing financial information by management…

3. Curve and Big Daddy Blaise are both apparel retailers offering plus-sized clothes as part of the "Rise Above Body-Shaming" movement that started on 2016. The financial statements of Shannon's Curve and Big Daddy Blaise for year 2019 are as follows: Statement of Profit or Loss for the year 2019: Shannon's Curve P2,580,000 (200,000) 2,380,000 (865,000) (339,000) (250,000) 926,600 Big Daddy Blaise P2,000,000 (230,000) 1,770,000 (500,000) (256,000) (100,000) 914,000 Sales Cost of Goods Sold Gross Profit Administrative Expense Selling Expenses Finance Cost Net Profit Statement of Financial Position for the year 2019: Shannon's Curve Big Daddy Blaise ASSETS P5,300,000 250,000 400,000 300,000 P6,250,000 Property, Plant and Equipment Inventories P3,680,000 250,000 800,000 200,000 P4,930,000 Trade Receivables Cash and cash equivalents Total Assets CAPITAL AND LIABILITIES Share Capital Retained Profit Bank loan Trade Payables Total Capital and Liabilities 2,500,000 1,223,000 1,000,000 207,000 P4,930,000 2,500,000 1,392,000 2,000,000 358,000 P6,250,000 Which is better in terms of profitability and liquidity? Justify your answer.

3. Curve and Big Daddy Blaise are both apparel retailers offering plus-sized clothes as part of the "Rise Above Body-Shaming" movement that started on 2016. The financial statements of Shannon's Curve and Big Daddy Blaise for year 2019 are as follows: Statement of Profit or Loss for the year 2019: Shannon's Curve P2,580,000 (200,000) 2,380,000 (865,000) (339,000) (250,000) 926,600 Big Daddy Blaise P2,000,000 (230,000) 1,770,000 (500,000) (256,000) (100,000) 914,000 Sales Cost of Goods Sold Gross Profit Administrative Expense Selling Expenses Finance Cost Net Profit Statement of Financial Position for the year 2019: Shannon's Curve Big Daddy Blaise ASSETS P5,300,000 250,000 400,000 300,000 P6,250,000 Property, Plant and Equipment Inventories P3,680,000 250,000 800,000 200,000 P4,930,000 Trade Receivables Cash and cash equivalents Total Assets CAPITAL AND LIABILITIES Share Capital Retained Profit Bank loan Trade Payables Total Capital and Liabilities 2,500,000 1,223,000 1,000,000 207,000 P4,930,000 2,500,000 1,392,000 2,000,000 358,000 P6,250,000 Which is better in terms of profitability and liquidity? Justify your answer.

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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