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Name: - Section: 5 6 7 Student's I/d

ZH business continued to flourish over three years as shown by the financial statements. The profit and loss accounts show sales increasing from $415,000 to $885,000 from 19X0 to 19X2 with corresponding increases in costs and profits. The balance sheets show fixed assets increasing from $89,000 to $101,000 while current assets also increased substantially over the three years from $77,000 to $272,000. Owner's equity grew from $100,000 to $466,000 indicating the increasing value of the business. The student is asked to compute various financial ratios for the three years to analyze the business performance and financial position over time.

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Azam Roslan
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32 views2 pages

Name: - Section: 5 6 7 Student's I/d

ZH business continued to flourish over three years as shown by the financial statements. The profit and loss accounts show sales increasing from $415,000 to $885,000 from 19X0 to 19X2 with corresponding increases in costs and profits. The balance sheets show fixed assets increasing from $89,000 to $101,000 while current assets also increased substantially over the three years from $77,000 to $272,000. Owner's equity grew from $100,000 to $466,000 indicating the increasing value of the business. The student is asked to compute various financial ratios for the three years to analyze the business performance and financial position over time.

Uploaded by

Azam Roslan
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd

Assignment 2

COEB 442

Name:______________________________
i/d: ___________

Section 5, 6, 7

Section: 5

Students

Assignment
1
ZH business continued to flourish. Six years later his condensed financial accounts
for the last three years are summarized below (ZH he introduced fresh capital into
the business):
Profit and Loss account for the year ended 31 March
19X0
19X1
19X2
$(000's)
$(000's)
$(000's)
Sales (all on credit)
415
645
885
Less: Cost of goods sold:
Opening stock
Purchases
Less; Closing stock
Gross profit
Less: Other Expenses
Loan interest

35
340
375
40

335
80
40
40

Net Profit

40
565
605
65

40

540
105
50
50
55

Balance Sheet as at 31 March


19X0
19X1
$(000's)
$(000's)
89
93

Fixed assets
Current assets:
Stocks
Trade debtors/ Acc.
Receivables
Cash at Bank

40
52

65
108

12

Financed by:
Long Term Liabilities
Loan
Current liabilities
Creditors
Bank overdraft

77
0

Owners Equity
Capital
Add. Net profit for the year

100
40

104
193

77
77

132
0

755
130
60
10
60

19X2
$(000's)
101
115
250

179
272

120
55
1

65
805
870
115

132
132

365
466

110
178
10

146
60

188
298

Assignment 2

COEB 442

Less: Drawings

24

116
193

Section 5, 6, 7

35

140
272

38

168
466

Compute the following ratios for 19X0, 19X1 and 19X2. Comment briefly on the
results of the business over the last three years
a) gross profit on cost of goods sold
b) Debt ratio
c) Profit margin on sale
d) current ratio
e) Quick ratio
f) working capital
g) Return on total assets

Assignment 2
The data below are taken from the financial statements of Beranang Hardware
Manufacturing Corporation (in RM1,000s).
Cash
Sales revenue
Accounts receivable
Accounts Payable
Notes Payable
Prepaid taxes and
insurance
Income taxes payable
Selling expenses
Long term debt
Cost of goods sold
Inventory
Land
Plant and Equipment

RM

880
30,000
470
940
510
60
700
2,000
2300
20,000
1,400
1,640
2,850

Calculate :

1. the current assets


2. the current liabilities
3. the shareholders equity
4. the working capital
5.

the debt ratio and interpret your answer

6.

the acid test ratio and interpret your answer

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