GIMPA

POST GRADUATE DIPLOMA IN BUSINESS ADMINISTRATION

Data Sheet
Alpha Industries Limited
Statement of Financial Position 31 December 2010
GH
Non-current assets
Land
10,800
Machinery and equipment
387,560
Fixed assets (gross)
398,360
Less: Accumulated depreciation
181,000
Total fixed assets (net)
217,360

2011
GH

2012
GH

10,800
400,300
411,100
204,560
206,540

10,800
418,230
429,030
225,460
203,570

10,800
440,890
451,690
250,000
201,690

Current assets
Stock
Debtors
Prepayments
Cash
Total current assets

375,690
175,640
13,450
96,440
661,220

409,870
126,730
36,540
66,780
639,920

342,510
173,240
35,800
61,450
613,000

390,000
230,000
40,550
72,100
732,650

Current liabilities
Trade creditors
Accrued expenses
Short term loans
Current portion LTD
Total current liabilities

72,340
44,560
98,210
50,000
265,110

68,790
37,800
72,360
50,000
228,950

72,340
38,310
20,780
50,000
181,430

85,610
42,900
55,800
50,000
234,310

Net current assets

396,110

410,970

431,570

498,340

Non current liabilities

Long-term debt
Deferred tax
Total non-current liabilities
Total assets less liabilities

250,000
36,790
286,790
326,680

200,000
28,500
228,500
389,010

150,000
29,660
179,660
455,480

100,000
32,660
132,660
567,370

Share capital and surplus

Stated capital
Income surplus
Shareholders funds

120,000
206,680
326,680

120,000
269,010
389,010

120,000
335,480
455,480

120,000
447,370
567,370

2013
GH

Alpha Industries Limited

Statement of Income for December
2010
GH
Sales
1,127,450
Cost of sales
689,710
Depreciation expense
28,740
Total cost of sales
718,450
Gross profit
409,000
Selling, general and administration expense 201,710
Net operating profit
207,290
Interest income
6,300
Interest expense
32,340
Total other income (expense)
(26,040)
Profit before tax
181,250
Tax
68,250
Net profit after tax
113,000
Dividends payable
20,000
Retained earnings
93,000

2011
GH
885,680
544,780
31,110
575,890
309,800
163,660
146,140
3,730
33,920
(30,190)
115,950
53,620
62,330
-------62,330

2012
GH
1,058,630
632,140
35,490
667,630
391,000
208,080
182,920
3,890
24,350
(20,460)
162,460
75,990
86,470
20,000
66,470

2013
GH
1,501,000
710,820
38,900
749,720
751,280
351,000
400,280
4,200
33,280
(29,080)
371,200
86,420
284,780
25,000
259,780

Required:
(a) Compute the following financial ratios:
(i) Profitability ratios
a. Gross profit margin
b. Operating profit margin
c. Net profit margin
d. Return on Capital Employed
(ii) Liquidity ratios
a. Current ratios
b. Quick ratios
c. Cash ratios
(iii) Solvency ratios
a. Debt to total capital ratios
b. Interest cover
(iv) Efficiency ratios
a. Stock turnover ratios
b. Stock holding period
c. Debtors collection period
d. Creditors payment period
(b) Discuss the trends in the financial ratios computed and the performance of Alpha Industries
Limited.
2