Professional Documents
Culture Documents
Nimbin P/L
Statement of Financial Position
As at 30 June 2015 and 2016
($000)
2016 2015
Current assets
Cash and cash equivalents $1,645 $2,110
Accounts receivables (all trades) 4,100 3,675
Inventories 7,000 6,930
______ _____
Total current assets 12,745 12,715
______ ______
Non-current assets
Property, plant and equipment 17,190 15,330
_______ ______
Total non-current assets 17,190 15,330
_______ _______
Total assets $29,935 $28,045
======= ======
Current liabilities
Payables $5,780 $5,990
_______ ______
Total current liabilities 5,780 5,990
_______ ______
Non-current liabilities
Interest-bearing liabilities 9,940 9,450
_______ _____
Total non-current liabilities 9,940 9,450
_______ _______
Total liabilities $15,720 $15,440
====== ======
Equity
Share capital $7,700 $7,700
Retained earnings 6,515 4,905
_______ _______
Total equity $14,215 $12,605
====== ======
Nimbin P/L
Share capital
Ordinary (7,200.000 shares)
Balance at start of period $7,200
______
Balance at end of period 7,200
_______
Retained Earnings
Balance at start of period $4,905
Total income for the period 4,362
Dividends paid – ordinary (2,702)
Dividends paid – preference (50)
______
Balance at end of period $6,515
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Additional information:
Required:
A. Calculate the following ratios for 2016. The industry average for similar
businesses is shown. (6 marks)
Industry average
1. Rate of return on total assets 22%
2. Rate of return on ordinary equity 20%
3. Profit margin 4%
4. Earnings per share 45c
5. Price-earnings ratio 12.0
6. Dividend yield 5%
7. Dividend payout 70%
8. Current ratio 2.5:1
9. Quick ratio (acid ratio) 1.3:1
10. Receivables turnover 13
11. Inventory turnover 6
12. Debt ratio 40%
13. Times interest earned 6
14. Assets turnover 1.8
a) A local restaurant is noted for its fine food, as evidenced by the large number of
customers. A customer was heard to remark that the secret of the restaurant’s success
was its fine chef. Would you regard the chef as an asset of the business? If so, would
you include the chef on the balance sheet of the business and at what value? Discuss.
(2 MARKS)
Apart from indicating the financial statements (s) involved, use appropriate phrases
such as ‘increase total asset’, ‘decrease equity’, ‘increase income’, ‘decrease cash
flow’ to describe the transaction concerned.
THE END