INDIVIDUAL ASSIGNMENT

ACC 103, PAC 121 AND BAC 121, PRINCIPLE OF ACCOUNTING II

Submission Friday, April 28th, 2023 before 10:00 am

10 marks

Question 01.

The following is the statement of financial position of Jambo Enterprises Ltd as at 30 th June,
2021:
Jambo Enterprises
Statement of financial position (partial extract)
Assets TZS “000” Owners equity &liabilities TZS “000”
Land and buildings 140,000 Share capital 200,000
Plant and machinery 350,000 Profit and loss account 30,000
Stock 200,000 General reserve 40,000
Sundry debtors 100,000 12% debenture 420,000
Bills receivable 10,000 Sundry creditors 100,000
Cash at bank 40,000 Bills payable 50,000
Total 840,000 Total 840,000

Required
(a) For Jambo Enterprises Ltd, compute the following financial ratios:
(i) Current ratio.
(ii) Quick ratio
(iii) Debt to equity ratio
(iv) Proprietary ratio
(v) Capital gearing ratio.
(b) What are the relevant interpretations to be derived from your analysis in part (a) above?