nancial statement data for the years ending December 31, 20Y3 and 20Y2, for Lawson Company follow: 20Y3 20Y2 Sales $663,000 $516,000 Total assets: Beginning of year 240,000 190,000 End of year 270,000 240,000 a. Determine the asset turnover for 20Y3 and 20Y2. Round your answers to one decimal place. 20Y3 20Y2 Asset turnover fill in the blank 1 fill in the blan

A9

Compare the Solvency, Liquidity and Profitability for the two companies

Use your knowledge of balance sheets and common-size statements to fill in the missing dollar amounts. (Round percentage answers to 1 decimal place, e.g. 527.5.) Assets             Cash   $24,706     3.4 % Accounts receivable   $123,349       % Inventory   $       27.4 % Total current assets   $349,949       % Gross plant and equipment   $       95.0 % Less: accumulated depreciation   $313,000     42.5 % Net plant and equipment   $         % Total assets   $736,949     100.0 % Liabilities             Accounts payable   $       15.8 % Notes payable   $28,961     3.9 % Total current liabilities   $         % Long-term debt   $245,383     33.3 % Total liabilities   $390,893       % Common stock ($0.01 par, 450,000 shares)     $4,500     0.6 % Paid-in capital   $223,452     30.3 % Retained earnings   $         % Total stockholders' equity   $346,056     47.0 % Total liabilities and equity   $       100.0 %

Calculate the asset efficiency - receivables, inventory, fixed asset and total asset turnover ratios

Statement of Profit and Loss and Other Comprehensive Income for the years ended 31 December 2024 2023 R'000 R'000 Turnover 1287052 934052 Operating Profit 137342 81768 Net Finance Cost 39264 20862 Operating Profit before taxation 98078 60906 Income tax expense 7027 3048 Profit for the Year 91051 57858 3502 2237 Operating profit includes Depreciation and loss on sale of fixed asset 5/12 Required: a) Prepare the cash flows from operating activities for the company for 2024 using the available information (10 Marks) b) Perform a financial review of the company based on calculating the following financial ratios and explain how it may be interpreted. Debt equity ratio Times interest earned Current ratio Debtors average collection period Inventory turnover Your answer should include an overall assessment of the company (25 Marks) c) List the audit steps to verify the existence of inventory (10 Marks)

A condensed balance sheet for Simultech Corporation and a partially completed vertical analysis are presented below. Complete the vertical analysis by computing each missing line item as a percentage of total assets. (Round your answers to the nearest whole percent.)       SIMULTECH CORPORATION Balance Sheet (summarized) January 31 (in millions of U.S. dollars) Cash $433 29 % Current Liabilities $409 27 % Accounts Receivable 294 19   Long-term Liabilities 495 33   Inventory 206 14   Total Liabilities 904     Other Current Assets 109     Common Stock 118     Property and Equipment 27 2   Retained Earnings 492 32   Other Assets 445 29   Total Stockholders’ Equity 610     Total Assets $1,514 100 % Total Liabilities & Stockholders’ Equity $1,514 100 %   2A. What percentage of Simultech’s total assets relate to inventory? (Round your answer to the nearest whole percent.) 2B. What percentage of Simultech’s total assets relate to property…

The following are financial data taken from the annual report of Foundotos Company: Year 2 $134,448 51,981 37,154 57,504 Net sales Gross property, plant and equipment Accumulated depreciation Intangible assets (net) A. Calculate the following ratios for Year 1 and Year 2: 1. Fixed asset turnover 2. Accumulated depreciation divided-by-gross fixed assets B. What do the trends in these ratios reveal about Foundotos? Year 1 $130,060 47,744 34,180 36,276

A-6

Calculate the total asset turnover (sales / total assets) for the firm below. Make sure you do NOT convert your answer and keep 2 decimals for your final answer.....for examples, if you calculate 6,000/400 = 15, you should enter 15 into BB to be marked correct.  Sales 4000 COGS $1,200 Depreciation $800 Interest $500 Net Income $200 Total Assets 1700