How can calculate the gearing ratio for both company? Alpha£000's £000'sBeta£000's £000'sFixed AssetsFreehold property at costOther assets at cost105,000188,00063,00084,000DepreciationNet book value21.00066.00042,000147,00018.000206,000Current AssetsStocks70,87579,800Debtors44,075114,95042.420122.220Current LiabilitiesCreditors81,72042,00032,530Overdraft1,420Тахation20,0003,50053.950127.220Net Current Assets/(Liabilities)61.000(5,000)208,000201,000Non-Current Liabilities8% Debentures 20X652,500155,500201,000Financed by:Ordinary sharesRetained profits84,000128,00071,500155,50073.000201,000

Ratio is a tool which is used to study the relation between different items of financial statements.…

Beta Alpha £000's £000's £000's £000's Fixed Assets Freehold property at cost Other assets at cost 105,000 188,000 63,000 84,000 Depreciation Net book value 21.000 66.000 42.000 147,000 18.000 206,000 Current Assets Stocks 70,875 79,800 Debtors 44,075 42.420 122.220 114.950 Current Liabilities Creditors Overdraft Taxation 32,530 1,420 81,720 42,000 20,000 53.950 3,500 127.220 Net Current Assets/(Liabilities) 61,000 (5,000) 208,000 201,000 Non-Current Liabilities 8% Debentures 20X6 52.500 155,500 201,000 Financed by: Ordinary shares Retained profits 84,000 128,000 71,500 155,500 73.000 201,000

Beta Alpha £000's £000's £000's £000's Fixed Assets Freehold property at cost Other assets at cost 105,000 188,000 63,000 84,000 Depreciation Net book value 21.000 66.000 42.000 147,000 18.000 206,000 Current Assets Stocks 70,875 79,800 Debtors 44,075 42.420 122.220 114.950 Current Liabilities Creditors Overdraft Taxation 32,530 1,420 81,720 42,000 20,000 53.950 3,500 127.220 Net Current Assets/(Liabilities) 61,000 (5,000) 208,000 201,000 Non-Current Liabilities 8% Debentures 20X6 52.500 155,500 201,000 Financed by: Ordinary shares Retained profits 84,000 128,000 71,500 155,500 73.000 201,000

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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