Profit and Loss Account for the year ended 31st December 2021 (Figures are in £000)ParticularsXYZABCSales3,6904,586Less: Cost of Goods Sold (Including purchases)(2,146)(2,690)Gross Profit1,5441,896Less: Selling & Distribution Expenses Less: Depreciation(1,103)(1,253)Earnings before Interest & Tax or Operating Profit441643Less: Interest(225)(192)Earnings before Tax216451Less: Taxes(86)(180)Earnings after Tax or Net Profit130271Balance Sheet as at31st December 2021 (Figures are in £000)AssetsXYZABCFixed Assets4,5424,790Current Assets Account Receivables274313Inventory654702Cash140163Total Current Assets1,0681,178Total Assets5,6105,968Liabilities Capital3,8244,310Long Term Debt883760Current Liabilities Account Payables519572Other Current Liabilities384326Total Current Liabilities903898Total Liabilities and Equity5,6105,968Liquidity Ratios – Calculate and analyse at least one of the following: Current RatioQuick Ratio

Introduction:- Current ratio is a liquidity ratio which determines the number of times total…

Fundamentals of Financial Management (MindTap Course List)

15th Edition

ISBN:9781337395250

Author:Eugene F. Brigham, Joel F. Houston

Publisher:Eugene F. Brigham, Joel F. Houston

Chapter4: Analysis Of Financial Statements

Section: Chapter Questions

Problem 24P: Income Statement for Year Ended December 31, 2018 (Millions of Dollars) Net sales 795.0 Cost of...

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Profit and Loss Account for the year ended 31st December 2021 (Figures are in £000)

Particulars	XYZ	ABC
Sales	3,690	4,586
Less: Cost of Goods Sold (Including purchases)	(2,146)	(2,690)
Gross Profit	1,544	1,896
Less: Selling & Distribution Expenses
Less: Depreciation	(1,103)	(1,253)
Earnings before Interest & Tax or Operating Profit	441	643
Less: Interest	(225)	(192)
Earnings before Tax	216	451
Less: Taxes	(86)	(180)
Earnings after Tax or Net Profit	130	271

Balance Sheet as at31st December 2021 (Figures are in £000)

Assets	XYZ	ABC
Fixed Assets	4,542	4,790
Current Assets
Account Receivables	274	313
Inventory	654	702
Cash	140	163
Total Current Assets	1,068	1,178
Total Assets	5,610	5,968
Liabilities
Capital	3,824	4,310
Long Term Debt	883	760
Current Liabilities
Account Payables	519	572
Other Current Liabilities	384	326
Total Current Liabilities	903	898
Total Liabilities and Equity	5,610	5,968

Liquidity Ratios – Calculate and analyse at least one of the following:
1. Current Ratio
2. Quick Ratio

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