Calculate the Gearing Ratio and Interest Coverage Ratio for 2021 and 2022 Table 1: Jets Ltd Statement of Financial Position as at 30 June 20222022Current AssetsCash and cash equivalentTrade receivablesInventoryTotal Current assetsNon-Current AssetsTotal AssetsCurrent liabilitiesTrade payablesTax payableTotal current liabilitiesNon-Current LiabilitiesTotal LiabilitiesShare capital and reservesTotal liabilities I share capital andreserves$m20702,2402,33011,40013,7303,0203153,3355,3508,6855,04513,7302021$m220741,9002,19412,00014,1942,7004003,1006,0949,1945,00014.194 Table 2: Jets Ltd Statement of Comprehensive Income for the Year ending 30 June 202220222021$m$mRevenueCost of salesGross profitOperating expensesOperating profitFinance incomeFinance costsProfit on ordinary activities beforetaxationIncome taxProfit for the year18,080(11,336)6,744(5,044)1,70030(580)1,150(345)80518,000(11,026)6,974(4,574)2,400100(400)2,100(630)1,470

Answered: Calculate the Gearing Ratio and…

Cornerstones of Financial Accounting

4th Edition

ISBN:9781337690881

Author:Jay Rich, Jeff Jones

Publisher:Jay Rich, Jeff Jones

Chapter12: Fainancial Statement Analysis

Section: Chapter Questions

Problem 16MCQ

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Pharoah Corporation’s comparative balance sheet is presented below. PHAROAH CORPORATIONBalance SheetDecember 31 Assets 2021 2020 Cash $12,010 $8,980 Accounts receivable 17,810 19,660 Land 16,800 21,840 Buildings 58,800 58,800 Accumulated depreciation—buildings (12,600 ) (8,400 ) Total $92,820 $100,880 Liabilities and Shareholders’ Equity Accounts payable $10,390 $26,120 Common shares 63,000 57,960 Retained earnings 19,430 16,800 Total $92,820 $100,880 Additional information: 1. Profit was $19,010. Dividends declared and paid were $16,380. 2. No noncash investing and financing activities occurred during 2021. 3. The land was sold for cash of $4,120 resulting in a loss of $920 on the sale of the land. Prepare a cash flow statement for 2021 using the indirect method. Lu…
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Current Attempt in Progress XYZ provided the following financial information: XYZBalance SheetAs of 12/31/19 Assets: Liabilities and Equity: Cash and marketable securities $27,476 Accounts payable and accruals $154,860 Accounts receivable $143,519 Short-term notes payable $21,255 Inventory $212,379 Total current liabilities $176,115 Total current assets $383,374 Long term debt $155,510 Net plant and equipment $602,704 Total liabilities $331,625 Goodwill and other assets $42,422 Common stock $312,719 Retained earnings $384,156 Total assets $1,028,500 Total liabilities and equity $1,028,500 In addition, it was reported that the firm had a net income of: $158,402 and net sales of: $4,272,431 Calculate the following ratios for this firm (Use 365 days for calculation. Round answers to 2 decimal places, e.g.…

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