Welcome

Anti Essays offers essay examples to help students with their essay writing.

Sign Up

B203 Tma03 Essay

Open Document

Below is an essay on "B203 Tma03" from Anti Essays, your source for research papers, essays, and term paper examples.

Part 1

Q1. Calculate the ratios below (a)-(g) for Tech Logistics plc for the 2010 and 2011 periods. Show how you have arrived at your answers.
  (a)   Gross profit margin
  (b)   Current ratio
  (c)   Acid test ratio
  (d)   Average settlement period for trade receivables
  (e)   Average inventories turnover period
  (f)     Gearing ratio
  (g)   Price/earnings ratio

Tech logistics financial rations for the 2010 and 2011 periods are as follows:

(a) Gross profit margin
2010 = 29.2%
2011 = 33.9%

2010 = 7,300 x 100 = 29.2%
      25,000

2011 = 9,300 x 100 = 33.9%
      27,400

(b) Current ratio
2010 = 0.87:1
2011 = 0.85:1

2010 = 1,300 + 810 + 400 = 0.87
          2,900

2011 = 1,380 + 980 + 320 = 0.85
          3,140

(c) Acid test ratio
2010 = 0.42:1
2011 = 0.41:1

2010 = 810 + 400 = 0.42
  2,900

2011 = 980 + 320 = 0.41
  3,140

(d) Average settlement period for trade receivables
2010 = 11.8 days
2011 = 13.1 days

2010 = 810 x 365 = 11.8
  25,000

2011 = 980 x 365 = 13.1
  27,400

(e) Average inventories turnover period
2010 = 26.8 days
2011 = 27.8 days

2010 =   1,300 x 365     = 26.8
25,000 – 7,300

2011 =     1,380 x365     = 27.8
27,400 – 9,300

(f) Gearing ratio
2010 = 16.10%
2011 = 14.78%

2010 =             1,700             = 0.1610
8,000 + 860 + 1,700

2011 =               1,620               = 0.1478
8,000 + 1,340 + 1,620

(g) Price/earnings ratio
2010 = 11.00:1
2011 = 11.82:1

2010 earnings per share =   810   = 0.10
8,000
2011 earnings per share =   890   = 0.11
8,000
2010 share price = 1.10
2011 share price = 1.30

2010 = 1.10 = 11
0.10

2011 = 1.30 = 11.82
0.11

Q2. Comment on how the company’s overall performance compares to the average for its industry, pointing out any significant features, assumptions and limitations of the information used to analyse...

Show More


Citations

MLA Citation

"B203 Tma03". Anti Essays. 9 Dec. 2018

<http://teachingsail.com/free-essays/B203-Tma03-583232.html>

APA Citation

B203 Tma03. Anti Essays. Retrieved December 9, 2018, from the World Wide Web: http://teachingsail.com/free-essays/B203-Tma03-583232.html


└ Feinschmecker | Bad Move - Season 2 | Season 2 Episode 6 Janet and Michael