Example onehe information below has been extracted from the recently published accounts of Gabby Itd:Extracts from the income statement to 3gn April 2016;2015SalesCost of sales2016(000)11,200(00)9,7506.8258,460Net profit before tax465320The following expenses were chargedDepreciationLoan note interestInterest on bank overdraftAudit fees3602808060151210Tax4030Balance sheet as at 30h April:20162015(000)(000)00)(000)AssetsFixed assetsCurrent assetsInventoryReceivables1.8501,4306404901.0801201,230Cash801,9503,8001,6903,120Total assetsEquity and liabilitiesOrdinary share capitalRetained earnings8008001.3102,1109301.73018 Non current liabilities10% loan stock600800Curre WabilitiesBank overdraftFayablesTaxation80690201107508903.8007903.12030he fotlowing ratios were calculated by Gabby Itd based on its published financial statements for 2014and also the latest industry average ratios;Industry averageGabby Itd 2014Current ratio21.9Quick ratio1.271.4218.5%ROCE16.7%3.9%4.29x30%40 days30 days4.73%Net profit marginAsset turnover3.91x35.23%52 days49 daysGross profit marginAccounts receivable collection periodAccounts payable payment periodInventory turnoverCapital gearing13.9x18.3x26.37%32.71%Requireda. Calculate comparable ratios for Gabby Itd.b. Compare your results against the previous year's and against the industrial average.

It is the analysis of a company's performance under different dimensions such as profitability,…

Example one The information below has been extracted from the recently published accounts of Gabby itd: Extracts from the income statement to 3O April 2016; 2015 Sales Cost of sales Net profit before tax 2016 (000) 11.200 8,460 465 (000) 9,750 6.825 320 The following expenses were charged Depreciation Loan note interest Interest on bank overdraft Audit fees Tax 360 280 80 60 15 6. 10 30 12 40

Example one The information below has been extracted from the recently published accounts of Gabby itd: Extracts from the income statement to 3O April 2016; 2015 Sales Cost of sales Net profit before tax 2016 (000) 11.200 8,460 465 (000) 9,750 6.825 320 The following expenses were charged Depreciation Loan note interest Interest on bank overdraft Audit fees Tax 360 280 80 60 15 6. 10 30 12 40

Financial Accounting: The Impact on Decision Makers

10th Edition

ISBN:9781305654174

Author:Gary A. Porter, Curtis L. Norton

Publisher:Gary A. Porter, Curtis L. Norton

Chapter13: Financial Statement Analysis

Section: Chapter Questions

Problem 13.8E

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The following information has been extracted from the financial statements of Dandy & Grandee Superstores Ltd. Extracts from the Income Statements for year ended 30 April ……                                                             2019                2018 $’000 $’000 Sales 11,200 9,750 Cost of sales 8,460 6,825 Net profit before tax 465 320 This is after charging: Depreciation 360 280 Loan note interest 80 60 Interest on bank overdraft 15 9 Audit fees 12 10 Statement of financial position as at 30 April …. 1`2019 2018 $’000 $’000 $’000 $’000 Assets Non -current assets 1850 1430 Current assets Inventory 640 490 Receivables 1230 1080 Cash 80 1950 120 1690 TOTAL ASSETS 3800 3120 EQUITY & LIABILITIES Equity…
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