The following information relates to Zalip limited and Avela limited which operates wholesale stores as at June 2020: Statement of financial position as at 30 June 2020 Zalip Limited – Shs "Million' Avela Limited – Shs "Million Non - Current assets: Land and buildings Fixtures and fittings 360 510 91.2 601.2 87 447 Current assets: Inventories Trade receivables 403 321.9 91.6 816.5 1,417.7 592 176.4 Cash bank 84.6 853 Total Assets Equity and Liabilities: Ordinary shares (sh 1 each) | 320 Retained earnings Total equity Non- current Liabilities: Borrowings - Loan notes Current Liabilities: Trade payables Тахation 1,300 250 624.6 874.6 367.6 687.6 190 250 406.4 275.7 16 17.4 422.4 293.1 Total equity and liabilities Income statement for the year ended 30 June 2020 Zalip Limited – Shs "Million' | 1,478,1 (1,018.3) Avela Limited – Shs "Million' Revenue Cost of sales Gross profit Operating expenses Operating profit Interest payable Profit before taxation Taxation Profit for the year 1,790.4 (1,214.9) 459.8 | (308,5) 151.30 (19.4) 131.90 575.5 (408.6) 166.90 (27.5) 139.40 (32.0) 99,90 (34.80) 104.60 Additional information 1. All purchases and sales were on credit 2. Zalip limited and Avela limited has announced their intention to pay dividend of sh. 135 million and shs 95 million respectively in respect of the year 2020. 3. The market value of a share in Zalip limited and Avela limited at the end of the year were shs 6.50 and sh 8.20 respectively Required For each business, calculate two ratios that are concerned with each of the following aspects: i) Profitability ii) Efficiency iii) Liquidity iv) Gearing b) Interpret the ratios above
The following information relates to Zalip limited and Avela limited which operates wholesale stores as at June 2020: Statement of financial position as at 30 June 2020 Zalip Limited – Shs "Million' Avela Limited – Shs "Million Non - Current assets: Land and buildings Fixtures and fittings 360 510 91.2 601.2 87 447 Current assets: Inventories Trade receivables 403 321.9 91.6 816.5 1,417.7 592 176.4 Cash bank 84.6 853 Total Assets Equity and Liabilities: Ordinary shares (sh 1 each) | 320 Retained earnings Total equity Non- current Liabilities: Borrowings - Loan notes Current Liabilities: Trade payables Тахation 1,300 250 624.6 874.6 367.6 687.6 190 250 406.4 275.7 16 17.4 422.4 293.1 Total equity and liabilities Income statement for the year ended 30 June 2020 Zalip Limited – Shs "Million' | 1,478,1 (1,018.3) Avela Limited – Shs "Million' Revenue Cost of sales Gross profit Operating expenses Operating profit Interest payable Profit before taxation Taxation Profit for the year 1,790.4 (1,214.9) 459.8 | (308,5) 151.30 (19.4) 131.90 575.5 (408.6) 166.90 (27.5) 139.40 (32.0) 99,90 (34.80) 104.60 Additional information 1. All purchases and sales were on credit 2. Zalip limited and Avela limited has announced their intention to pay dividend of sh. 135 million and shs 95 million respectively in respect of the year 2020. 3. The market value of a share in Zalip limited and Avela limited at the end of the year were shs 6.50 and sh 8.20 respectively Required For each business, calculate two ratios that are concerned with each of the following aspects: i) Profitability ii) Efficiency iii) Liquidity iv) Gearing b) Interpret the ratios above
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter12: Intangibles
Section: Chapter Questions
Problem 10MC
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