a) Mwambao Co. Ltd. had the following statements of financial position as at 31/3/013 Assets year…
a) Mwambao Co. Ltd. had the following statements of financial position as at 31/3/013
Assets year 2011 year 2012
| Fixed assets at cost |
1000 |
1300 | |||
| Less: Accumulated depreciation |
400 |
600 | |||
| Current Assets |
600 |
700 | |||
| Inventories |
800 |
1400 | |||
| Debtors |
2700 |
3100 | |||
| Bank |
200 |
— | |||
| . |
4300 |
5200 |
Share Capital and Liabilities
| Share capital | 1000 | 1300 | |||
| Share premium | 500 | 700 | |||
| Retained Earnings | 1200 | 1240 | |||
| ..Current Liabilities | 2700 | 3240 | |||
| Creditors | 1300 | 1580 | |||
| Declared ordinary dividends | 300 | 260 | |||
| Bank overdraft | …… | 120 | |||
| .. | 4300 | 5200 |
During the year to 31st March 2012 fixed assets costing 50000 was sold for 40000. Accumulated depreciation on these to 31st was 20000.
Required :-
i) Cash flow statement for the year ending 2012. ii) Current ratio iii) Stock turnover ratio given 3850 as the cost of goods sold.
iv) Return on shareholders equity. (16 mrks)
b) Tetu Company Ltd and Tatu Company Ltd had the following balances for the year 2011:-
| Tetu | Tatu | ||||
| Sales | 144000 | 144000 | |||
| Gross Profit | 48000 | 48000 | |||
| Opening Stock | 34000 | 46000 | |||
| Closing Stock | 30000 | 50000 |
Required
i) Compare their stock turnover
What could account for the difference in their stock turnover. (4 mrks
