Prepare classified statement of financial performance

Reference no: EM13766283

Assignment

Listed below are account balances, cash receipts and payments and other data for X Limited, a company that distributes chemical supplies, for the financial year ended 30 June 2012 and 2013:

2012 2013

$ $

Accounts payable.......................................................................... 22 000 10500

Accounts receivable...................................................................... 11 000 15000

Accumulated depreciation (buildings)........................................ 119 000 125000

Accumulated depreciation (equipment)........................................ 45 000 60000

Buildings..................................................................................... 412 000 450000

Cash.............................................................................................. 16 000 20000

Contributed capital..................................................................... 300 000 300000

Purchase....................................................................................... 170000 180000

Dividends (declared and paid)..................................................... 17 000 12000

Equipment................................................................................... 245 000 250000

General and administrative expenses............................................ 96 000 90000

Income tax expense...................................................................... 14 000 20000

Income tax payable......................................................................... 6 000 5000

Interest expense............................................................................ 25 000 30000

Interest payable............................................................................. 14 000 10000

Land.............................................................................................. 35 000 40000

Long-term investments................................................................. 35 000 50000

Merchandise inventory................................................................. 62 000 70000

Loans, current portion................................................................... 34 000 22000

Loans, non-current...................................................................... 278 000 290000

Prepaid insurance............................................................................ 7 000 5000

Retained earnings, beginning balance........................................... 25 000 60000

Sales revenue.............................................................................. 357 000 400000

Selling expenses............................................................................ 47 000 35000

Supplies......................................................................................... 13 000 15000

Trademarks................................................................................... 13 000 15000

Wages payable.............................................................................. 18 000 14500

Beginning inventory for the financial year ended 3oth June 2012 is $ 15,000

Required:

a) Prepare classified Statement of Financial Performance for 2012 and 2013

b) Prepare classified Statement of Financial Position for 2012 and 2013

C) From the company's financial statements, calculate the following ratios for the two years:-

i) Return on Assets ratio

ii) Return on Equity ratio

iii) Net Margin

iv) Quick ratio

v) Current ratio

vi) Asset turnover ratio

vii) Average settlement period for debtors

viii) Average settlement period for creditors

ix) Interest cover ratio

x) Gross profit margin.

d) Provide a Report to Management of X Limited Company giving advice based on your results from the ratios above.

Reference no: EM13766283

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