Interpret the financial statements of clariton antiques

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Reference no: EM131936550

Interpret the following financial statements of Clariton Antiques Ltd using appropriate ratios (Solvency, liquidity, profitability, gearing, asset utilization) and mak comparison with the previous year?

Income statement
			2016	2015
			000	000

Revenue			1,255	1,220
cost of sales			(1,077)	(1,045)
Gross profit			178	175
Operating expenses			(121)	(129)
Profit from operations			57	46
Finance cost			(10)	(10)
Profit before tax			47	36
Income tax expense			(14)	(13)
Profit for the period			33	23


Statement of changes
			2015	2014
			000	000

Opening balance			276	261
profit for the period			33	23
Dividend			-8	-8
Closing balance			301	276


Balance sheet


Assets
	Property, plant and equipment	580	575
	Goodwill	100	100
Total non-current assets		680	675

	Inventories	47	46
	Trade receivables	12	13
	Cash	46	12
Total current assets		105	71

Total assets		785	746


Equity
	Share capital	150	150
	Accumulated profits	151	126
Total equity		301	276

	Interest on borrowings	142	140
	Deferred tax	25	21
Total non-current liabilities		167	161

	Trade payable	297	273
	Short term borrowings	20	36
Total current liabilities		317	309

Total equity and liabilities		785	746

Reference no: EM131936550

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