The Territory Holiday Extravaganza Company Ltd had a bad year in 2016 when it suffered a net loss. Some of the measures...
The Territory Holiday Extravaganza Company Ltd had a bad year in 2016 when it suffered a net loss. Some of the measures of return deteriorated due to the loss. The management of the company are wondering how they can improve their ratios for the following year to keep their jobs and the banks and the shareholders happy. They have come up with the following ideas. 1 Borrow $100 million on long-term debt. 2 Buy back shares for $500 million cash....
Connor Ltd. is a large private company owned by the Connor family. It operates a manufacturing business in northern Ontario. It has applied to the ICB bank for a new loan of $100 million to expand its manufacturing facilities. You are a financial analyst with ICB. You have just been given an assignment to analyze Connor’s Year 7 financial statements and to identify any concerns about Connor’s performance and financial condition. The following are financial statements for Connor Ltd. for...
The comparative statements of Enchanted Ltd are
presented here.
ENCHANTED LTD
Statement of profit or loss
for the years ended 30 June
2019
2020
Net sales
$1340000
$1180000
Cost of sales
656600
542800
Gross profit
683400
637200
Selling and administrative expense
300696
439668
Finance costs
27336
57348
Profit before income tax
355368
140184
Income tax expense
95949
35046
Profit for the period
$259419
$105138
ENCHANTED LTD
Statement of financial position
as at 30 June
Assets
2019
2020
Current assets
Cash...
LARKER TOOL SA Statements of Financial Position December 31 Assets 2017 2016 Plant assets (net) R$600,300 R$520,300 Current assets Inventory R$110,950 R$115,500 Accounts receivable (net) 105,750 102,800 Short-term investments 69,000 50,000 Cash 60,100 345,800 64,200 332,500 Total assets R$946,100 R$852,800 Equity and Liabilities 2017 2016 Equity Share capital—ordinary (R$5 par) R$300,000 R$300,000 Retained earnings 242,600 165,000 Total equity 542,600 465,400 Bonds payable 200,000 200,000 Current liabilities Accounts payable 160,000 145,400 Income taxes payable 43,500 42,000 Total current...
Exercise 11.17 (East View Ltd)
(g) Times interest earned ratio ST11.17 he comparative financial statements of East View Ltd for the year ended 31 December are as follows East View Ltd Comparative income statement for the year ended 31 December 2016 2015 (RM) (RM) 260,000 300,000 Net sales (all credit sales) Less: Costs and expenses Cost of goods sold Selling and administration expenses Interest expenses 177,000 207,500 60,400 57,400 3,000 7,000 3,600 9,000 280,500 19,500 Income tax expenses Total costs...
Connor Ltd. is a large private company owned by the Connor family. It operates a manufacturing business in northern Ontario. It has applied to the ICB bank for a new loan of $100 million to expand its manufacturing facilities. You are a financial analyst with ICB. You have just been given an assignment to analyze Connor’s Year 7 financial statements and to identify any concerns about Connor’s performance and financial condition. The following are financial statements for Connor Ltd. for...
HIROOLE LTD. Statement of Financial Position December 31 (in thousands) 2018 2017 2016 Assets Current assets Cash $30 $81 $200 Accounts receivable 907 698 504 Inventory 1,190 794 497 Total current assets 2,127 1,573 1,201 Property, plant, and equipment (net) 4,105 3,831 3,230 Total assets $6,232 $5,404 $4,431 Liabilities and Shareholders' Equity Liabilities Current liabilities $596 $553 $499 Non-current liabilities 3,047 2,303 1,508 Total liabilities 3,643 2,856 2,007 Shareholders' equity Common shares 999999999 Retained earnings 1,590 1,549 1,425 Total shareholders'...
The treasurer of Reality Ltd has recently developed a
computer model to help in the prediction of profits, statement of
financial positions and cash flows. By entering the expected sales
figure and the value of various other parameters, the model will
print profit-related data and produce a statement of financial
position. Given the parameters in the question, compose the
predicted statement of profit or loss and the statement of
financial position produced by the model (Round all amounts
calculated to...
(Common-size analysis and differences in profitability and leverage) Comparative financial statement data for Cool Brewery Ltd. and Northern Beer Ltd., two competitors, follow (amounts in thousands): Cool Brewery Ltd. 2020 2019 Northern Beer Ltd. 2020 2019 Net sales $219,110 $41,380 Cost of goods sold 98,340 15,530 Operating expenses 83,890 18,700 Interest expense 7.990 380 Income tax expense 4,840 1,130 Cash 4,640 8,200 $2,640 7,980 Other current assets Long-term assets (net) Current liabilities 12,800 $10,320 86,880 81,480 196,790 218,710 75,520 55,070...
'Second-Hands Ltd is a company that sells secondhand motor vehides. The owners (shareholders) of the business are interested to know how the business has performed over the past two years and have you to report on the performance of the business, in particular on the liquidity of the business. You are provided with the following information: Average for the 2019 2020 industry Current ratio Current Assets/Current liabilities 3:1 2.5:1 2.3:1 + 1.5:1 0.8:1 1:1 Quick ratio (Cash assets + Receivables)/Current...