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You are the Financial Controller of Konka Ltd. Zeus Ltd is a competitor in the same industry, and it has been operating for 20 years. Summaries of Zeus Ltd’s statements of profit or loss and financial position for the previous three years are given below.
Summarised Statement of Profit or Loss For the year ended 31 December
| 2018 | 2019 | 2020 | |
|---|---|---|---|
| Revenue | 840 | 981 | 913 |
| Cost of sales | (554) | (645) | (590) |
| Gross profit | 286 | 336 | 323 |
| Administration and selling expenses | (186) | (214) | (219) |
| Profit before interest and taxes | 100 | 122 | 104 |
| Finance cost | (6) | (15) | (19) |
| Profit before taxation | 94 | 107 | 85 |
| Taxation | (45) | (52) | (45) |
| Profit after taxation | 49 | 55 | 40 |
| Dividends | 24 | 24 | 24 |
Summarised Statement of Financial Position as at 31 December
| 2018 | 2019 | 2020 | |
|---|---|---|---|
| Assets | |||
| Non-current assets | |||
| Intangible assets | 36 | 40 | 48 |
| Tangible assets at net book value | 176 | 206 | 216 |
| Total Non-current assets | 212 | 246 | 264 |
| Current assets | |||
| Inventories | 237 | 303 | 294 |
| Receivables | 105 | 141 | 160 |
| Bank | 52 | 58 | 52 |
| Total Current Assets | 394 | 502 | 506 |
| Total Assets | 606 | 748 | 770 |
| Equity and Liabilities | |||
| Equity | |||
| Stated capital | 100 | 100 | 100 |
| Retained earnings | 299 | 330 | 346 |
| Total Equity | 399 | 430 | 446 |
| Non-current liabilities | |||
| Long-term loans | 74 | 138 | 138 |
| Current liabilities | |||
| Trade payables | 53 | 75 | 75 |
| Other payables | 80 | 105 | 111 |
| Total Current Liabilities | 133 | 180 | 186 |
| Total Equity and Liabilities | 606 | 748 | 770 |
Required:
a) Analyzing the performance and position of Zeus Ltd and showing any calculations in an appendix to this report.
(15 marks)
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Question:
Which of the following information CANNOT be revealed by a statement of cash flow?
A. The entity’s short-term solvency
B. Operating cash position
C. Financial position of the entity
D. Liquidity position of the entity
E. Investing activities of the entity
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You are a private consultant for Ashtown Ltd, a listed company in Ghana operating in the manufacturing sector. Below is a Statement of Financial Position and a summarized statement of changes in equity with comparatives for the year ended 31 December 2015.
Statement of Financial Position as at 31 December 2015:
Required:
Prepare a report and address it to the Chief Executive Officer, analyzing the financial performance and financial position of Ashtown Ltd based on the industry ratios above for the years 2014 and 2015.
Find Related Questions by Tags, levels, etc.
Find Related Questions by Tags, levels, etc.
You are the Financial Controller of Konka Ltd. Zeus Ltd is a competitor in the same industry, and it has been operating for 20 years. Summaries of Zeus Ltd’s statements of profit or loss and financial position for the previous three years are given below.
Summarised Statement of Profit or Loss For the year ended 31 December
| 2018 | 2019 | 2020 | |
|---|---|---|---|
| Revenue | 840 | 981 | 913 |
| Cost of sales | (554) | (645) | (590) |
| Gross profit | 286 | 336 | 323 |
| Administration and selling expenses | (186) | (214) | (219) |
| Profit before interest and taxes | 100 | 122 | 104 |
| Finance cost | (6) | (15) | (19) |
| Profit before taxation | 94 | 107 | 85 |
| Taxation | (45) | (52) | (45) |
| Profit after taxation | 49 | 55 | 40 |
| Dividends | 24 | 24 | 24 |
Summarised Statement of Financial Position as at 31 December
| 2018 | 2019 | 2020 | |
|---|---|---|---|
| Assets | |||
| Non-current assets | |||
| Intangible assets | 36 | 40 | 48 |
| Tangible assets at net book value | 176 | 206 | 216 |
| Total Non-current assets | 212 | 246 | 264 |
| Current assets | |||
| Inventories | 237 | 303 | 294 |
| Receivables | 105 | 141 | 160 |
| Bank | 52 | 58 | 52 |
| Total Current Assets | 394 | 502 | 506 |
| Total Assets | 606 | 748 | 770 |
| Equity and Liabilities | |||
| Equity | |||
| Stated capital | 100 | 100 | 100 |
| Retained earnings | 299 | 330 | 346 |
| Total Equity | 399 | 430 | 446 |
| Non-current liabilities | |||
| Long-term loans | 74 | 138 | 138 |
| Current liabilities | |||
| Trade payables | 53 | 75 | 75 |
| Other payables | 80 | 105 | 111 |
| Total Current Liabilities | 133 | 180 | 186 |
| Total Equity and Liabilities | 606 | 748 | 770 |
Required:
a) Analyzing the performance and position of Zeus Ltd and showing any calculations in an appendix to this report.
(15 marks)
Find Related Questions by Tags, levels, etc.
Question:
Which of the following information CANNOT be revealed by a statement of cash flow?
A. The entity’s short-term solvency
B. Operating cash position
C. Financial position of the entity
D. Liquidity position of the entity
E. Investing activities of the entity
Find Related Questions by Tags, levels, etc.
You are a private consultant for Ashtown Ltd, a listed company in Ghana operating in the manufacturing sector. Below is a Statement of Financial Position and a summarized statement of changes in equity with comparatives for the year ended 31 December 2015.
Statement of Financial Position as at 31 December 2015:
Required:
Prepare a report and address it to the Chief Executive Officer, analyzing the financial performance and financial position of Ashtown Ltd based on the industry ratios above for the years 2014 and 2015.
Find Related Questions by Tags, levels, etc.
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