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Statement Analysis_Question

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4 views

Statement Analysis_Question

Uploaded by

wanglaohu0812
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© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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FINANCIAL STATEMENT ANALYSIS

The Statement of Financial Position and Statement of Profit or Loss for XYZ Ltd.
are shown below.

Statement of Financial Position


as at 30 June 2021

2021 2020

Current Assets
Cash at Bank 390 300
Trade Receivables 1,460 1,290
Short Term Investments 380 440
Inventory 2,010 1,770
Prepaid Expenses 100 100
Total Current Assets 4,340 3,900

Non-Current Assets
Long Term Investments 200 500
Property, Plant and Equip. 2,100 1,800
Other 100 100
Total Non Current Assets 2,400 2,400

Total Assets 6,740 6,300

Current Liabilities
Trade Payables 910 800
Accrued Expenses 250 250
Loan Payable 600 650
Total Current Liabilities 1,760 1,600

Non Current Liabilities


Loan Payable 1,900 1,700
Total Non Current Liabilities 1,900 1,700

Total Liabilities 3,660 3,300

Net Assets 3,080 3,000

Equity
Capital 2,502 2,502
Retained Profits 578 498
Total Equity 3,080 3,000
Statement of Profit or Loss
For the year ended 30 June 2021
2021 2020

Sales 10,320 9,582


Less Cost of Sales 7,719 6,975
Gross Profit 2,601 2,607

Less Operating Expenses


Wages Expense 1,030 800
Depreciation 567 620
Interest Expense 252 230
Total Operating Expense 1,849 1,650

Operating Profit 752 957

NOTE:
1. All sales are made on credit.
2. Total assets as at 30 June 2019 were $5,900.
3. Trade Receivables as at 30 June 2019 was $1,100.
4. Inventory as at 30 June 2018 was $1,560

Ratio 2021 2020 Industry Average


Current 1.38
Net Profit 11.4%
Debt/Equity 65%
Interest Coverage 6.7
Return on Assets 21.2%
Trade Receivables 12
Inventory Turnover 6.5

Required
a) Calculate the financial ratios for 2021 and 2020.
b) Using the ratios, comment on the financial position and performance of
XYZ Ltd.

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