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QUESTION 4 (25 marks) Below are financial statement for three unrelated companies. One company is an estate agent, one is a supermarket chain and one is a car manufacturer STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 MARCH 2020 A Ltd BLtd Cuid N5.000 N5.000 N5.000 Sales 12.000 4,150 25.300 Cost of sales (1,645 (14.600) Gross profil 8,830 2.505 Operating expenses Operating profit Finance costs (70) (74) Profit before taxation 280 Income for the period (84) (287) (474) Profit for the period 196 1.106 (3,170) (8 480) 350 10.700 (1475 1.030 8.900 1200 2201 1580 STATEMENT OF FINANCIAL POSITION FOR THE YEAR ENDED 31 MARCH 2020 A Lid Blid Cuid COOO C000 3.400 500 1.250 155 40 1.055 Assets Non-current assets Property, plant and equipment Current assets Inventories Accounts receivable Cash TOTAL ASSETS Equity and Liabilities Capital and reserves Ordinary share capital Retained earings Current liabilities Accounts payable TOTAL EQUITY AND LIABILITIES 11.500 4.580 1.200 2.800 580 16.080 150 3,450 100 3.750 474 100 374 12.830 200 13.630 1,200 4.650 319 2250 16.022 The following key ratios have been correctly calculated for A Lid Ratio 2020 Operating profit margin 2.9% Sales to total assets 2.6 times Current ratio 1,04:1 Inventory holding period 18 days Accounts receivable collection period 1 day Financial Accounting 18 (A3692) Individual Assignment Dur date: 12 October 2020 REQUIRED: 1. Calculate the same key ratios for B Lid and CLid (10 marks) Operating profit margin Sales to total assets Current ratio I. Inventory holding period Accounts receivable collection period 2. Considering each company in tum, discuss with reason, which of Alad. Blad and C Lid is like to be the estate agent, the supermarket chain and the car manufacturer You should use all five ratios in your discussion of each company (15 marks) QUESTION 4 (25 marks) Below are financial statement for three unrelated companies. One company is an estate agent, one is a supermarket chain and one is a car manufacturer. STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 MARCH 2020 A Ltd BLtd Lid N5.000 NS,000 N$.000 Sales 12.000 4,150 Cost of sales 25.300 (3.170) (1.645) (14.600) Gross profit 8.830 2,505 10.700 Operating expenses (8.480) (1475) (8.900 Operating profit 350 1.030 1.800 Finance costs (70) (220) Profit before taxation 280 1,580 Income for the period (84) (287) (474) Profit for the period 196 669 1.106 STATEMENT OF FINANCIAL POSITION FOR THE YEAR ENDED 31 MARCH 2020 A Ltd C000 BLtd COOD CLid CORO 500 11.500 3.400 1.250 155 40 1,055 4.650 150 Assets Non-current assets Property, plant and equipment Current assets Inventories Accounts receivable Cash TOTAL ASSETS Equity and Liabilities Capital and reserves Ordinary share capital Retained earnings Current liabilities Accounts payable TOTAL EQUITY AND LIABILITIES 4.580 1.200 2.800 580 16.080 3.450 100 3.750 474 100 374 12,830 200 13,630 1.200 4.650 319 2.250 16.000 The following key ratios have been correctly calculated for A Ltd Ratio 2020 Operating profit margin 2,9% Sales to total assets 2,6 times Current ratio 1.041 Inventory holding period 18 days Accounts receivable collection period 1 day Financial Accounting 18 (6392) Individual Assignment Due dete: 22 October 2020 REQUIRED: 1. Calculate the same key ratios for B Lid and C Lid (10 marks) L Operating profit margin Sales to total assets Current ratio Inventory holding period V. Accounts receivable collection period 2. Considering each company in tum. discuss with reason, which of A Ltd. B Ltd and C Ltd is like to be the estate agent, the supermarket chain and the car manufacturer You should use all five ratios in your discussion of each company. (15 marks QUESTION 4 (25 marks) Below are financial statement for three unrelated companies. One company is an estate agent, one is a supermarket chain and one is a car manufacturer, STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 MARCH 2020 A Ltd BLtd CLid NS.000 NS.000 Sales N5,000 12.000 25,300 Cost of sales (3.170) (14.600) Gross profit 8.830 2505 10,700 Operating expenses (8.480) (1,475) (8.900) Operating profil 350 1030 1.800 Finance costs (70) (14) Profit before taxation 280 1.580 Income for the period (84) (287) Profit for the period 669 1,106 4 150 (1.545 956 (220) 196 STATEMENT OF FINANCIAL POSITION FOR THE YEAR ENDED 31 MARCH 2020 A Lid C000 B Lid cuid COD COOO 3.400 500 11.500 155 1.250 40 1,055 4.650 293 150 793 Assets Non-current assets Property, plant and equipment Current assets Inventories Accounts receivable Cash TOTAL ASSETS Equity and Liabilities Capital and reserves Ordinary share capital Retained earnings Current liabilities Accounts payable TOTAL EQUITY AND LIABILITIES 4.580 1.200 2.800 580 16,080 3.450 100 12,830 200 13,630 100 374 3.750 1.200 319 2.250 16.080 The following key ratios have been correctly calculated for A Ltd Ratio 2020 Operating profit margin 2.9% Sales to total assets 2.6 times Current ratio 1,041 Inventory holding period 18 days Accounts receivable collection period 1 day Financial Accounting 18 (AF83692) Individual Assignment Due date: 12 October 2020 REQUIRED: 1. Calculate the same key ratios for B Lid and Lid (10 marks) Operating profit margin Sales to total assets ii. Current ratio iv. Inventory holding period Accounts receivable collection period 2. Considering each company in tum, discuss with reason, which of A Lid. Blad and C Ltd is like to be the estate agent, the supermarket chain and the car manufacturer You should use all five ratios in your discussion of each company (15 marks) V STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 MARCH 2020 A Lid BLtd C Ltd N5,000 N$,000 N5,000 Sales 12.000 4,150 25,300 Cost of sales (3,170) (1.545) (14.600) Gross profit 8,830 2.505 10,700 Operating expenses (8.480) (1.475) (8,900) Operating profil 350 1.030 1.800 Finance costs (70) (74) (220) Profit before taxation 280 956 1.580 Income for the period (34) (287) (474) Profit for the period 196 669 1,106 STATEMENT OF FINANCIAL POSITION FOR THE YEAR ENDED 31 MARCH 2020 A Ltd C000 BLtd C000 C Ltd C000 3.400 500 11,500 Assets Non-current assets Property, plant and equipment Current assets Inventories Accounts receivable Cash TOTAL ASSETS 290 1.250 155 40 1.055 150 143 793 4,580 1,200 2,800 580 16.080 12,830 200 13.530 2.250 16,089 Equity and Liabilities Capital and reserves 3.450 Ordinary share capital 100 100 Retained earnings 3.750 374 Current liabilities Accounts payable 1.200 319 TOTAL EQUITY AND LIABILITIES 793 The following key ratios have been correctly calculated for A Ltd Ratio 2020 Operating profit margin 2.9% Sales to total assets 26 times Current ratio 1041 Inventory holding period Accounts receivable collection period 1 day Financial Accounting 18 (AFE3692) Individual Assignment Due date: 12 October 2020 REQUIRED: 1. Calculate the same key ratios for B Lid and Cid (10 marks) Operating profit margin Sales to total assets Current ratio Inventory holding period Accounts receivable collection period 2. Considering each company in tum, discuss with reason, which of A Lid B Lid and C Ltd is like to be the estate agent, the supermarket chain and the car manufacturer You should use all five ratios in your discussion of each company (15 marka

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