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Hayleigh Plc

Statements of comprehensive income for years ended $31$ december

$20242023$

Profit before interest and tax $$2,200,000$ $$1,570,000$

interest expense $$170,000$ $$150,000$

profit before tax $$2,030,000$ $$1,420,000$

taxation $$730,000$ $$520,000$

profit after tax $$1,300,000$ $$900,000$

dividends paid $$250,000$ $$250,000$

tretained profit $$1,050,000$ $$650,000$

Hayleigh Plc

statements of financial position as at $31$ December

$20242023$

non$-$current assets $($writtn$-$down value$)$ $$6,350,000$ $$5,600,000$

current assets

inventories $$2,100,000$ $$2,070,000$

receivables $$1,710,000$ $$1,540,000$

$$10,160,000$ $$9,210,000$

Creditors: amount due within one year

trade payables $$1,040,000$ $$1,130,000$

taxation $$550,000$ $$450,000$

bank overdrafts $$370,000$ $$480,000$

total assets less urrent liabilities $$8,200,000$ $$7,150,000$

Creditors:amount due after more than one year

$10\%$ debentures $$1,500,000$ $$1,500,000$

$$6,700,000$ $$5,650,000$

Capital and reserves

share capital: ordinary shares of $50$c fully paid up $$3,000,000$ $$3,000,000$

share premium $$750,000$ $$750,000$

retained earnings $$2,950,000$ $$1,900,000$

$$6,700,000$ $$5,650,000$

required

A$.$ calculate the following ratios for the two years for the company

Ratio for a potential share holder

i$.$ return on euity

ii$.$ Earnings per share

iii. Dividend cover

iv$.$ Gearing i$.$e debt to long term capital

Ratios for a potentilal lender

i$.$ debt to equity

ii$.$ Interest cover

iii. Current ratio

iv$.$ Acid test ratio

B$.$ prepare commonsize income staement and statement of financial position for the two periods.

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