- 20 Marks
FR – Nov 2021 – L2 – Q4 -Financial Statement Analysis
Analysis of financial ratios and performance of Bebebe Ltd for 2019 and 2020.
Question
The following are the accounts of Bebebe Ltd (Bebebe), a company that manufactures playground equipment for the year ended 30 November 2020.
Statement of Comprehensive Income for the year ended 30 November:
Required:
a) Calculate, for both years, the return on equity and the return on capital employed. (4 marks)
b) Calculate, for both years, TWO (2) investment ratios to a potential investor. (4 marks)
c) Calculate, for both years, TWO (2) ratios of interest to a potential long-term lender. (4 marks)
d) Comment on the performance of Bebebe to a potential shareholder and lender using the ratios calculated above. (5 marks)
e) Explain THREE (3) weaknesses in these ratios.
(3 marks)
Find Related Questions by Tags, levels, etc.
Report an error