COMPANY AUDITED FINANCIAL STATEMENTS 2019 2018 2017 2016 2015 GH¢’000 GH¢’000 GH¢’000 GH¢’000 GH¢’000 PROFIT AND LOSS ACCOUNT Revenue 3,570,967 3,080,508 2,467,872 2,028,369 1,954,505 Cost of Sales -3,274,205 -2,850,976 -2,311,965 -1,882,756 -1,844,195 Gross Proft 296,762 229,532 155,907 145,613 110,310 Other Income 24,147 10,063 18,232 15,087 4,600 Operating Expense -207,995 -157,570 129,063 -117,770 -80,410 Oper Proft before Fin.Cost 112,914 82,025 45,076 42,930 34,500 Net Finance (Expenses) / Income -8,650 -5,830 4,435 7,068 -1,802 Proft before Taxation 104,264 76,195 49,511 49,998 32,698 Taxation -32,469 -22,081 -10,176 -14,742 -10,487 Net Proft After Tax 71,795 54,114 39,335 35,256 22,211 BALANCE SHEET ASSETS Non Current Assets 675,695 527,955 412,105 306,682 190,013 Available for Sale Financial Instruments / Investments 8,500 7,125 7,260 5,648 9,102 Stocks 36,707 32,731 42,153 29,594 24,584 Accounts Receivable 571,828 475,426 396,780 313,983 267,302 Short Term Investment 12,602 10,323 8,455 56,836 5,366 Income Tax Asset 0 0 7,346 6,046 Cash and Bank Balances 58,274 45,944 26,430 39,554 24,867 Total Assets 1,363,606 1,099,504 900,529 758,343 521,234 LIABILITIES Medium Term Loan 117,913 49,901 0 1,633 12,409 Short Term Loan 33,407 17,500 1,760 11,093 20,045 Bank Overdrafts 86,884 49,849 52,567 41,383 67,590 Accounts Payable 692,462 615,499 528,485 420,451 322,304 Deferred Tax 19,620 17,203 12,158 9,982 4,522 Taxation 8230 250 - - 707 Total Liabilities 958,516 750,202 594,970 484,542 427,577 SHAREHOLDERS’ FUNDS Stated Capital 185,589 185,589 185,589 185,589 31,809 Building Fund 18,220 13,763 10,361 7,788 5,426 Retained Earnings 194,450 142,703 102,226 74,654 47,198 Capital Surplus 6,831 7,248 7,383 5,770 9,224 Total 405,090 349,302 305,559 273,801 93,657 Total Liabilities & Shareholders’ funds 1,363,606 1,099,504 900,529 758,343 521,234 Calculate the following ratios for the period 2015-2019 from the financial statements given above. Profitability Ratios Liquidity Ratios Gearing Ratios Investment Ratios What are your observations and recommendations from your calculations?

COMPANY AUDITED FINANCIAL STATEMENTS 2019 2018 2017 2016 2015 GH¢’000 GH¢’000 GH¢’000 GH¢’000 GH¢’000 PROFIT AND LOSS ACCOUNT Revenue 3,570,967 3,080,508 2,467,872 2,028,369 1,954,505 Cost of Sales -3,274,205 -2,850,976 -2,311,965 -1,882,756 -1,844,195 Gross Proft 296,762 229,532 155,907 145,613 110,310 Other Income 24,147 10,063 18,232 15,087 4,600 Operating Expense -207,995 -157,570 129,063 -117,770 -80,410 Oper Proft before Fin.Cost 112,914 82,025 45,076 42,930 34,500 Net Finance (Expenses) / Income -8,650 -5,830 4,435 7,068 -1,802 Proft before Taxation 104,264 76,195 49,511 49,998 32,698 Taxation -32,469 -22,081 -10,176 -14,742 -10,487 Net Proft After Tax 71,795 54,114 39,335 35,256 22,211 BALANCE SHEET ASSETS Non Current Assets 675,695 527,955 412,105 306,682 190,013 Available for Sale Financial Instruments / Investments 8,500 7,125 7,260 5,648 9,102 Stocks 36,707 32,731 42,153 29,594 24,584 Accounts Receivable 571,828 475,426 396,780 313,983 267,302 Short Term Investment 12,602 10,323 8,455 56,836 5,366 Income Tax Asset 0 0 7,346 6,046 Cash and Bank Balances 58,274 45,944 26,430 39,554 24,867 Total Assets 1,363,606 1,099,504 900,529 758,343 521,234 LIABILITIES Medium Term Loan 117,913 49,901 0 1,633 12,409 Short Term Loan 33,407 17,500 1,760 11,093 20,045 Bank Overdrafts 86,884 49,849 52,567 41,383 67,590 Accounts Payable 692,462 615,499 528,485 420,451 322,304 Deferred Tax 19,620 17,203 12,158 9,982 4,522 Taxation 8230 250 - - 707 Total Liabilities 958,516 750,202 594,970 484,542 427,577 SHAREHOLDERS’ FUNDS Stated Capital 185,589 185,589 185,589 185,589 31,809 Building Fund 18,220 13,763 10,361 7,788 5,426 Retained Earnings 194,450 142,703 102,226 74,654 47,198 Capital Surplus 6,831 7,248 7,383 5,770 9,224 Total 405,090 349,302 305,559 273,801 93,657 Total Liabilities & Shareholders’ funds 1,363,606 1,099,504 900,529 758,343 521,234 Calculate the following ratios for the period 2015-2019 from the financial statements given above. Profitability Ratios Liquidity Ratios Gearing Ratios Investment Ratios What are your observations and recommendations from your calculations?

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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COMPANY AUDITED FINANCIAL STATEMENTS
	2019	2018	2017	2016	2015
	GH¢’000	GH¢’000	GH¢’000	GH¢’000	GH¢’000
PROFIT AND LOSS ACCOUNT
Revenue	3,570,967	3,080,508	2,467,872	2,028,369	1,954,505
Cost of Sales	-3,274,205	-2,850,976	-2,311,965	-1,882,756	-1,844,195
Gross Proft	296,762	229,532	155,907	145,613	110,310
Other Income	24,147	10,063	18,232	15,087	4,600
Operating Expense	-207,995	-157,570	129,063	-117,770	-80,410
Oper Proft before Fin.Cost	112,914	82,025	45,076	42,930	34,500
Net Finance (Expenses) / Income	-8,650	-5,830	4,435	7,068	-1,802
Proft before Taxation	104,264	76,195	49,511	49,998	32,698
Taxation	-32,469	-22,081	-10,176	-14,742	-10,487
Net Proft After Tax	71,795	54,114	39,335	35,256	22,211


BALANCE SHEET
ASSETS
Non Current Assets	675,695	527,955	412,105	306,682	190,013
Available for Sale Financial Instruments / Investments	8,500	7,125	7,260	5,648	9,102
Stocks	36,707	32,731	42,153	29,594	24,584
Accounts Receivable	571,828	475,426	396,780	313,983	267,302
Short Term Investment	12,602	10,323	8,455	56,836	5,366
Income Tax Asset	0	0	7,346	6,046
Cash and Bank Balances	58,274	45,944	26,430	39,554	24,867
Total Assets	1,363,606	1,099,504	900,529	758,343	521,234

LIABILITIES
Medium Term Loan	117,913	49,901	0	1,633	12,409
Short Term Loan	33,407	17,500	1,760	11,093	20,045
Bank Overdrafts	86,884	49,849	52,567	41,383	67,590
Accounts Payable	692,462	615,499	528,485	420,451	322,304
Deferred Tax	19,620	17,203	12,158	9,982	4,522
Taxation	8230	250	-	-	707
Total Liabilities	958,516	750,202	594,970	484,542	427,577

SHAREHOLDERS’ FUNDS
Stated Capital	185,589	185,589	185,589	185,589	31,809
Building Fund	18,220	13,763	10,361	7,788	5,426
Retained Earnings	194,450	142,703	102,226	74,654	47,198
Capital Surplus	6,831	7,248	7,383	5,770	9,224
Total	405,090	349,302	305,559	273,801	93,657
Total Liabilities & Shareholders’ funds	1,363,606	1,099,504	900,529	758,343	521,234

Calculate the following ratios for the period 2015-2019 from the financial statements given above.

Profitability Ratios
Liquidity Ratios
Gearing Ratios
Investment Ratios

What are your observations and recommendations from your calculations?

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