Scenario: Solaris Grid PLC operates in the renewable energy sector. Extracts from the financial statements for the year ended 31 December 20X5 (with 20X4 comparatives) are as follows:
Revenue: 20X5 $2,500,000; 20X4 $2,000,000.
Cost of Sales: 20X5 $1,600,000; 20X4 $1,200,000.
Operating Profit: 20X5 $450,000; 20X4 $400,000.
Finance Costs: 20X5 $50,000; 20X4 $40,000.
Equity: 20X5 $1,800,000; 20X4 $1,500,000.
Non-current Liabilities (10% Loan Notes): 20X5 $500,000; 20X4 $400,000.
Inventory: 20X5 $250,000; 20X4 $180,000.
Trade Receivables: 20X5 $300,000; 20X4 $220,000.
Trade Payables: 20X5 $210,000; 20X4 $150,000.
Assume a 365-day year.
Question: What is the Gross Profit for 20X5? (Enter numbers only)
ACCA · Question 63 · Interpretation of Financial Statements
Scenario: Solaris Grid PLC operates in the renewable energy sector. Extracts from the financial statements for the year ended 31 December 20X5 (with 20X4 comparatives) are as follows:
Revenue: 20X5 $2,500,000; 20X4 $2,000,000.
Cost of Sales: 20X5 $1,600,000; 20X4 $1,200,000.
Operating Profit: 20X5 $450,000; 20X4 $400,000.
Finance Costs: 20X5 $50,000; 20X4 $40,000.
Equity: 20X5 $1,800,000; 20X4 $1,500,000.
Non-current Liabilities (10% Loan Notes): 20X5 $500,000; 20X4 $400,000.
Inventory: 20X5 $250,000; 20X4 $180,000.
Trade Receivables: 20X5 $300,000; 20X4 $220,000.
Trade Payables: 20X5 $210,000; 20X4 $150,000.
Assume a 365-day year.
Question: Comparing 20X5 to 20X4, what has happened to the Current Ratio?
Answer options:
It has increased from 2.62 to 2.67.
It has decreased from 2.67 to 2.62.
It has remained constant.
It has decreased from 3.0 to 2.62.
65 questions · hints · full answers · grading
Expert