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1 + A O Shareholder funds 2,709 2,709 Reserves/retained earnings 3,241 542 Total equity / capital 5,950 3,251 (a) Use the simplified accounts shown above to calculate the following ratios for both years 2018 and 2019: i) Profitability (2 ratios required - 1 must be ROCE) = 4 marks ii) Gearing (1 ratio) = 2 marks iii) Liquidity = 4 marks (2 ratios required) (1 ratio) = 2 marks iv) Efficiency [12 Marks] A . S 10 A V Logistics Solutions plc has been established for 15 years and the following financial data is provided for the financial years 2019 and 2020. Extract from Annual Report & Accounts Simplified Statement of Profit or Loss 2019 2020 '000 '000 Sales Revenue 6,845 7,428 Gross Profit 4,122 3,971 Operating Profit (profit before interest + tax) 1,850 1,020 Interest (+) 267 333 Profit before tax 2,117 1,353 Corporation tax 423 270 Profit after tax 1,694 1,083 Simplified Statement of Financial Position 2019 2020 '000 '000 Non-Current Assets 12,645 8,944 Inventory 487 211 Accounts Receivable 3,422 1,002 Cash 124 78 Accounts Payable 4,188 2,114 6,540 4,920 Long-term loans (-) Net Assets 5,950 3,251 2.700 Shareholder funds O E % 5 R T 6 G Y B H 39 N wath 8 J 161 1 M K 2 L P 3 42C (b) Using your ratio calculations from question A1 (a) - please comment upon the changes in Logistics Solution's financial position over the two trading years under the following analysis areas:- Profitability Gearing Liquidity Efficiency [8 Marks] [A1 Total - 20 Marks] 1 + A O Shareholder funds 2,709 2,709 Reserves/retained earnings 3,241 542 Total equity / capital 5,950 3,251 (a) Use the simplified accounts shown above to calculate the following ratios for both years 2018 and 2019: i) Profitability (2 ratios required - 1 must be ROCE) = 4 marks ii) Gearing (1 ratio) = 2 marks iii) Liquidity = 4 marks (2 ratios required) (1 ratio) = 2 marks iv) Efficiency [12 Marks] A . S 10 A V Logistics Solutions plc has been established for 15 years and the following financial data is provided for the financial years 2019 and 2020. Extract from Annual Report & Accounts Simplified Statement of Profit or Loss 2019 2020 '000 '000 Sales Revenue 6,845 7,428 Gross Profit 4,122 3,971 Operating Profit (profit before interest + tax) 1,850 1,020 Interest (+) 267 333 Profit before tax 2,117 1,353 Corporation tax 423 270 Profit after tax 1,694 1,083 Simplified Statement of Financial Position 2019 2020 '000 '000 Non-Current Assets 12,645 8,944 Inventory 487 211 Accounts Receivable 3,422 1,002 Cash 124 78 Accounts Payable 4,188 2,114 6,540 4,920 Long-term loans (-) Net Assets 5,950 3,251 2.700 Shareholder funds O E % 5 R T 6 G Y B H 39 N wath 8 J 161 1 M K 2 L P 3 42C (b) Using your ratio calculations from question A1 (a) - please comment upon the changes in Logistics Solution's financial position over the two trading years under the following analysis areas:- Profitability Gearing Liquidity Efficiency [8 Marks] [A1 Total - 20 Marks]

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