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The following information has been extracted from the recently published accounts of Diamond Ltd and Shine Ltd.
Statement of Profit or Loss for the year ended 31 December 2016
The following are the latest industry average ratios:
Required:
Calculate comparable ratios (to two decimal places where appropriate) for the two companies. All calculations must be clearly shown.
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You are the Senior Financial Accountant at Saglema Plc (Saglema), a company that manufactures and sells painting materials in the local market and around the West African sub-region. At the first one-on-one meeting with the recently appointed chairperson of your company’s governing board, she asked you to produce a concise report on Saglema’s cash flow performance relative to that of Adidome Plc (Adidome), a close competitor, over the last two years.
The following are the cash flow statements for the last two years for Saglema and Adidome:
Cash Flow Statements for the Year Ended 31 August 2020 (together with comparatives):
Required:
i) Produce a report showing the comparative analysis of the cash flow performance and situation of Saglema over the last two years, relative to that of Adidome. (15 marks)
ii) Explain TWO (2) uses and THREE (3) limitations of such analysis. (5 marks)
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The owners of three electrical shops that sell very similar goods, but which operate in different towns, have agreed to discuss their business practices. They hope to identify ways in which each might improve performance. As a first step, the three businesses have sent their latest annual reports to an accountant. The accountant has made sure that their financial statements are comparable in terms of accounting policies and assumptions and has summarized the main figures. The accountant has prepared the following summary:
Statement of Profit or Loss for the year ended 30 June 2017
Required:
a) Compute TWO ratios each of profitability and efficiency of the shops, highlighting areas in which one or more appear(s) to be most successful. (10 marks)
b) You should make comments on what each ratio tells the user. (10 marks)
Find Related Questions by Tags, levels, etc.
Find Related Questions by Tags, levels, etc.
The following information has been extracted from the recently published accounts of Diamond Ltd and Shine Ltd.
Statement of Profit or Loss for the year ended 31 December 2016
The following are the latest industry average ratios:
Required:
Calculate comparable ratios (to two decimal places where appropriate) for the two companies. All calculations must be clearly shown.
Find Related Questions by Tags, levels, etc.
You are the Senior Financial Accountant at Saglema Plc (Saglema), a company that manufactures and sells painting materials in the local market and around the West African sub-region. At the first one-on-one meeting with the recently appointed chairperson of your company’s governing board, she asked you to produce a concise report on Saglema’s cash flow performance relative to that of Adidome Plc (Adidome), a close competitor, over the last two years.
The following are the cash flow statements for the last two years for Saglema and Adidome:
Cash Flow Statements for the Year Ended 31 August 2020 (together with comparatives):
Required:
i) Produce a report showing the comparative analysis of the cash flow performance and situation of Saglema over the last two years, relative to that of Adidome. (15 marks)
ii) Explain TWO (2) uses and THREE (3) limitations of such analysis. (5 marks)
Find Related Questions by Tags, levels, etc.
The owners of three electrical shops that sell very similar goods, but which operate in different towns, have agreed to discuss their business practices. They hope to identify ways in which each might improve performance. As a first step, the three businesses have sent their latest annual reports to an accountant. The accountant has made sure that their financial statements are comparable in terms of accounting policies and assumptions and has summarized the main figures. The accountant has prepared the following summary:
Statement of Profit or Loss for the year ended 30 June 2017
Required:
a) Compute TWO ratios each of profitability and efficiency of the shops, highlighting areas in which one or more appear(s) to be most successful. (10 marks)
b) You should make comments on what each ratio tells the user. (10 marks)
Find Related Questions by Tags, levels, etc.
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