- Provide information on a firm's liquidity and solvency and its ability to change cash flows in future
circumstance
- Provide additional information for evaluating changes in assets, liabilities and equity
- Improve the comparability of different firms' operating performance by eliminating the effects of
different accounting methods i.e. cash and accrual methods of accounting
- Indicate the amount, timing and probability of future cash flows
Titany answered the question on December 14, 2021 at 08:52
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a)Prepare an income and expenditure account for...(Solved)
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Date posted: December 14, 2021. Answers (1)
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Beta Ltd is reviewing the financial statements of two companies, Zeta Ltd and Omega Ltd. The companies trade as wholesalers, selling electrical goods to retailers on credit. Their most recent financial statements appear below.
Required:
a)Calculate for each company a total of eight ratios which will assist in measuring the three aspects of profitability, liquidity and management of the elements of working capital. Show all workings.
b)Based on the ratios you have calculated in (a), compare the two companies as regards their profitability, liquidity and working capital management.
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Date posted: December 14, 2021. Answers (1)
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Date posted: December 14, 2021. Answers (1)
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Date posted: December 10, 2021. Answers (1)
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Owik-Freez p.l.c. is a company which provides refrigerated storage facilities to local farmers.
Services offered include the collection of produce, the use of rapid freezing equipment, storage of the frozen produce and transport from frozen storage in refrigerated vehicles to any point within the country. Orders for these services are secured by the company’s sales staff.
The company’s revenue consists of charges for transport and freezing, and of storage rentals.
Customers may hire storage space either on a long-term contract basis at advantageous charges
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A considerable amount of electricity from the public supply is used by the company in the
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At the end of the company’s financial year ended 30 September 2008, the assistant accountant
extracted the following balances from the ledgers.
Required:
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Date posted: December 10, 2021. Answers (1)
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Date posted: December 10, 2021. Answers (1)