Statement of Profit or Loss for Guinness Ghana Ltd 2019 GH¢’000 2018 GH¢’000 2017 GH¢’000 Revenue from contracts with customers 684,979 623,102 587,447 Cost of sales (511,023) (464,781) (437,111) Gross profit 173,956 158,321 150,336 Advertising and marketing expenses (16,324) (21,773) (36,826) Administrative expenses (93,348) (76,491) (61,406) Other expenses (13,292) (8,876) (10,859) Impairment charges on financial assets (1,110) - - Other income 1,284 612 Profit from operating expenses 49,882 52,465 41,857 Finance income 2,245 2,357 443 Finance cost (19,579) (19,392) (30,724) Profit before income tax 32,548 35,430 11,576 Income tax expense (12,938) (9,226) (4,662) National fiscal stabilisation levy (1,564) (2,349) - Profit for the year 18,046 23,855 6,914 Other comprehensive income Items that are not subsequently reclassified to profit or loss: Actuarial gain (loss) on defined benefit obligations, net of tax 535 (163) (222) Other comprehensive income/ (loss) 535 (163) (222) Total comprehensive income for the year 18,581 23,692 6,692 Basic earnings per share GH¢ 0.059 GH¢ 0.078 GH¢ 0.022 Diluted earnings per share GH¢ 0.059 GH¢ 0.078 GH¢ 0.022 Statement of Financial Position for Guiness Ghana ASSETS 2019 GH¢’000 2018 GH¢’000 2017 GH¢’000 Property, plant and equipment 418,655 373,208 363,348 Intangible assets 2,716 3,116 3,610 Total non-current assets 421,371 376,324 366,958 Inventories 118,124 81,914 79,785 Trade receivables 42,637 30,822 23,070 Other financial assets at amortised cost 1,352 - - Amounts due from related parties 13,440 6,666 2,711 Other assets 6,689 5,602 - Current income tax assets 1,614 3,024 2804 Cash and bank balances 53,241 62,836 52,579 Total current assets 237,097 190,864 160,949 Total assets 658,468 567,188 527,907 EQUITY AND LIABILITIES Stated capital 272,879 272,879 272,879 Income surplus account 28,280 21,762 (1,930) Total equity 301,159 294,641 270,949 Deferred tax liabilities 26,964 23,115 13,933 Obligations under finance lease 7,474 10,575 12,105 Borrowings 109,313 108,991 109,999 Employee benefit obligations 3,263 2,145 1771 Total non-current liabilities 147,014 144,826 137,808 Bank overdrafts 28,723 - 7 Obligations under finance lease 7,466 8,211 9,117 Trade and other payables 161,816 105,069 91,096 Amounts due to related parties 11,527 13,725 18,772 Provisions 763 716 158 Total current liabilities 210,295 127,721 119,150 Total liabilities 357,309 272,547 256,958 Total equity and liabilities 658,468 567,188 527,907 Required: Using the statement you have prepared, compute the profitability. Based on these ratio values, perform a trend analysis

Statement of Profit or Loss for Guinness Ghana Ltd 2019 GH¢’000 2018 GH¢’000 2017 GH¢’000 Revenue from contracts with customers 684,979 623,102 587,447 Cost of sales (511,023) (464,781) (437,111) Gross profit 173,956 158,321 150,336 Advertising and marketing expenses (16,324) (21,773) (36,826) Administrative expenses (93,348) (76,491) (61,406) Other expenses (13,292) (8,876) (10,859) Impairment charges on financial assets (1,110) - - Other income 1,284 612 Profit from operating expenses 49,882 52,465 41,857 Finance income 2,245 2,357 443 Finance cost (19,579) (19,392) (30,724) Profit before income tax 32,548 35,430 11,576 Income tax expense (12,938) (9,226) (4,662) National fiscal stabilisation levy (1,564) (2,349) - Profit for the year 18,046 23,855 6,914 Other comprehensive income Items that are not subsequently reclassified to profit or loss: Actuarial gain (loss) on defined benefit obligations, net of tax 535 (163) (222) Other comprehensive income/ (loss) 535 (163) (222) Total comprehensive income for the year 18,581 23,692 6,692 Basic earnings per share GH¢ 0.059 GH¢ 0.078 GH¢ 0.022 Diluted earnings per share GH¢ 0.059 GH¢ 0.078 GH¢ 0.022 Statement of Financial Position for Guiness Ghana ASSETS 2019 GH¢’000 2018 GH¢’000 2017 GH¢’000 Property, plant and equipment 418,655 373,208 363,348 Intangible assets 2,716 3,116 3,610 Total non-current assets 421,371 376,324 366,958 Inventories 118,124 81,914 79,785 Trade receivables 42,637 30,822 23,070 Other financial assets at amortised cost 1,352 - - Amounts due from related parties 13,440 6,666 2,711 Other assets 6,689 5,602 - Current income tax assets 1,614 3,024 2804 Cash and bank balances 53,241 62,836 52,579 Total current assets 237,097 190,864 160,949 Total assets 658,468 567,188 527,907 EQUITY AND LIABILITIES Stated capital 272,879 272,879 272,879 Income surplus account 28,280 21,762 (1,930) Total equity 301,159 294,641 270,949 Deferred tax liabilities 26,964 23,115 13,933 Obligations under finance lease 7,474 10,575 12,105 Borrowings 109,313 108,991 109,999 Employee benefit obligations 3,263 2,145 1771 Total non-current liabilities 147,014 144,826 137,808 Bank overdrafts 28,723 - 7 Obligations under finance lease 7,466 8,211 9,117 Trade and other payables 161,816 105,069 91,096 Amounts due to related parties 11,527 13,725 18,772 Provisions 763 716 158 Total current liabilities 210,295 127,721 119,150 Total liabilities 357,309 272,547 256,958 Total equity and liabilities 658,468 567,188 527,907 Required: Using the statement you have prepared, compute the profitability. Based on these ratio values, perform a trend analysis

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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Statement of Profit or Loss for Guinness Ghana Ltd

	2019 GH¢’000	2018 GH¢’000	2017 GH¢’000
Revenue from contracts with customers	684,979	623,102	587,447
Cost of sales	(511,023)	(464,781)	(437,111)
Gross profit	173,956	158,321	150,336
Advertising and marketing expenses	(16,324)	(21,773)	(36,826)
Administrative expenses	(93,348)	(76,491)	(61,406)
Other expenses	(13,292)	(8,876)	(10,859)
Impairment charges on financial assets	(1,110)	-	-
Other income		1,284	612
Profit from operating expenses	49,882	52,465	41,857
Finance income	2,245	2,357	443
Finance cost	(19,579)	(19,392)	(30,724)
Profit before income tax	32,548	35,430	11,576
Income tax expense	(12,938)	(9,226)	(4,662)
National fiscal stabilisation levy	(1,564)	(2,349)	-
Profit for the year	18,046	23,855	6,914
Other comprehensive income Items that are not subsequently reclassified to profit or loss: Actuarial gain (loss) on defined benefit obligations, net of tax	535	(163)	(222)
Other comprehensive income/ (loss)	535	(163)	(222)
Total comprehensive income for the year	18,581	23,692	6,692
Basic earnings per share	GH¢ 0.059	GH¢ 0.078	GH¢ 0.022
Diluted earnings per share	GH¢ 0.059	GH¢ 0.078	GH¢ 0.022

Statement of Financial Position for Guiness Ghana

ASSETS	2019 GH¢’000	2018 GH¢’000	2017 GH¢’000
Property, plant and equipment	418,655	373,208	363,348
Intangible assets	2,716	3,116	3,610
Total non-current assets	421,371	376,324	366,958
Inventories	118,124	81,914	79,785
Trade receivables	42,637	30,822	23,070
Other financial assets at amortised cost	1,352	-	-
Amounts due from related parties	13,440	6,666	2,711
Other assets	6,689	5,602	-
Current income tax assets	1,614	3,024	2804
Cash and bank balances	53,241	62,836	52,579
Total current assets	237,097	190,864	160,949
Total assets	658,468	567,188	527,907
EQUITY AND LIABILITIES
Stated capital	272,879	272,879	272,879
Income surplus account	28,280	21,762	(1,930)
Total equity	301,159	294,641	270,949
Deferred tax liabilities	26,964	23,115	13,933
Obligations under finance lease	7,474	10,575	12,105
Borrowings	109,313	108,991	109,999
Employee benefit obligations	3,263	2,145	1771
Total non-current liabilities	147,014	144,826	137,808
Bank overdrafts	28,723	-	7
Obligations under finance lease	7,466	8,211	9,117
Trade and other payables	161,816	105,069	91,096
Amounts due to related parties	11,527	13,725	18,772
Provisions	763	716	158
Total current liabilities	210,295	127,721	119,150
Total liabilities	357,309	272,547	256,958
Total equity and liabilities	658,468	567,188	527,907

Required:

Using the statement you have prepared, compute the profitability. Based on these ratio values, perform a trend analysis using excel.

Definition Definition Financial statement that provides a snapshot of an organization's financial position at a specific point in time. It summarizes a company's assets, liabilities, and shareholder's equity, detailing what the company owns, what it owes, and what is left over for its owners. The balance sheet serves as a crucial tool to assess the financial health and stability of a company, as well as to help management make informed decisions about its future investments and financial obligations.

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