Evaluate and comment on businesses financial performance by calculating and analysing 2 profitability, liquidity and solvency ratios based on the information from financial statements Consider whether certain aspects (profitability, liquidity or solvency) can be improved and if so, how? (300 words) Statement of changes in equityRetained eanings1,200Add: Proft2,170Less: loses3,144Retained eanings, 30th April226 S tatement of financial positionStatem ent of cash flowsCash fows from operating activities:Curert asset:Cash received4,910Cash1,406Cash paid5,504Recevables1,460Net discrease in cash594Ivertories1,880S tatement of pro fit or lossTotal curent assets4,746Revenues:Servike revenu1,420Total 2sseb4,746Expenses:Curent liabilties:Advertis ing expense150Accourts payable1,840Rentexpense450Accural Account230Insurance210Total curent liabilities2,070Gas expense125Net AssetsElectricity expense2562,676FquityDepreciation expense80Share captal2,450Totalexperse1,271Profit149Retaired eamirgs226Total eouity2.676

Answered: Statement of changes in equity Retained…

Statement of changes in equity Retained eanings 1,200 Add: Profit 2,170 Less: loses 3,144 Retained eamings, 30th April 226

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Question

Evaluate and comment on businesses financial performance by calculating and analysing 2 profitability, liquidity and solvency ratios based on the information from financial statements Consider whether certain aspects (profitability, liquidity or solvency) can be improved and if so, how? (300 words)

Statement of changes in equity
Retained eanings
1,200
Add: Proft
2,170
Less: loses
3,144
Retained eanings, 30th April
226

S tatement of financial position
Statem ent of cash flows
Cash fows from operating activities:
Curert asset:
Cash received
4,910
Cash
1,406
Cash paid
5,504
Recevables
1,460
Net discrease in cash
594
Ivertories
1,880
S tatement of pro fit or loss
Total curent assets
4,746
Revenues:
Servike revenu
1,420
Total 2sseb
4,746
Expenses:
Curent liabilties:
Advertis ing expense
150
Accourts payable
1,840
Rentexpense
450
Accural Account
230
Insurance
210
Total curent liabilities
2,070
Gas expense
125
Net Assets
Electricity expense
256
2,676
Fquity
Depreciation expense
80
Share captal
2,450
Totalexperse
1,271
Profit
149
Retaired eamirgs
226
Total eouity
2.676

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