Compute the corresponding ratios for Sean Paul for 2015
Sean Paul is a trader in vinyl records The firm has provided the following data for 2015 :
Condensed Income Statement Condensed Balance Sheet
|
Net Sales |
|
|
1,600,500 |
Non Current Assets |
|
|
2,400,000 |
|
|
|
|
|
|
Current Assets |
|
|
|
|
|
Cost of Goods Sold |
|
|
|
Stock |
|
74,500 |
|
|
|
Opening stock |
|
53,000 |
|
Debtors |
|
220,000 |
|
|
|
Add Net purchases |
|
410,000 |
|
Bank |
|
100,500 |
|
|
|
Less Closing stock |
|
(74,500) |
(388,500) |
Receivables |
|
32,000 |
427,000 |
|
|
Gross Profit |
|
|
1,212,000 |
Total Assets |
|
|
2,827,000 |
|
|
Net Operating Expenses |
|
|
(515,500) |
|
|
|
|
|
|
|
|
|
|
Capital & Reserves |
|
|
|
|
|
PBIT |
|
|
696,500 |
Ordinary Shares @ $1.00 |
|
500,000 |
|
|
|
Less interest |
|
|
-40,000 |
10% |
|
450,000 |
|
|
|
Profit before tax |
|
|
656,500 |
Reserves |
|
550,000 |
|
|
|
Less tax |
|
|
(200,000) |
Retained Profits |
|
531,500 |
2,031,500 |
|
|
PAT |
|
|
456,500 |
|
|
|
|
|
|
|
|
|
|
Non-Current Liability |
|
|
|
|
|
|
|
|
300,000 |
10% Loan |
|
|
400,000 |
|
|
Total Profit for the Year |
|
|
756,500 |
|
|
|
|
|
|
Less Transfer to Reserves |
|
(120,000) |
|
Current Liabilities |
|
|
|
|
|
Less Dividends |
|
|
|
Creditors |
|
250,000 |
|
|
|
Ordinary |
|
(60,000) |
|
Accounts Payable |
|
145,500 |
395,500 |
|
|
Preference |
|
(45,000) |
(225,000) |
Total Equity & Liabilities |
|
|
2,827,000 |
|
|
Retained Earning c/d |
|
|
531,500 |
|||||
|
|
|
|
|
|||||
|
Market Price per Share |
|
|
3.75 |
The following comparative ratios relate to
- Sean Paul’s results in the preceding two years of 2013 and 2014
- Shaggy, a main competitor who is also a performer and a promoter
- The average performance of the music industry:
|
SHAGGY |
INDUSTRY |
SEAN PAUL |
|
|
2013 |
2014 |
2015 |
|
|
Dividend Cover |
5.45 times |
5.00 times |
|
|
Debtors Turnover Period |
20. 58 days |
32.66 days |
|
|
|
2.89 : 1 |
2.50 : 1 |
|
|
Net Profit Margin |
22.34% |
25.50% |
|
|
Creditors Turnover |
1.04 times |
1.55 times |
|
|
Total Assets to Total Liabilities |
4.58 : 1 |
4.01 : 1 |
|
|
Earnings Per Share |
$0.68 |
$.075 |
|
|
Gearing Ratio |
32.11% |
35.50% |
|
|
ROSE |
26.50% |
25.50% |
|
|
Times Interest Earned |
16.45 times |
15.25 times |
|
Question
- Compute the corresponding ratios for Sean Paul for 2015
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