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Statement of Financial Position for year $2020$

Assets

Non Current Assets

Property, plan and equipment $1,423,843$

Right of us asset $238,238$

Intangible assets $64,500$

Investment in subsidiaries $-$

Investment in associate $5,614$

Defferred tax assets $36,238$

Trade and other receivables $13,056$

$1,781,489$

Current assets

Inventories $597,270$

Trade and other receivables $472,705$

Current tax assets $548$

Cash and bank balances $9,359$

Total $1,079,882$

Assets classified as held for sale $-$

Total $1,079,882$

Total Assets $2,861,371$

Equity and liabilities

Equity attributable to owners of the payment

Share capital $267,500$

Reserve $(3,534)$

Retained earnings $293,170$

Total equity $557,136$

Current liabilites

Loan and borrowings $257,701$

Lease liabilities $31,063$

Trade and other payables $1,480,838$

Current tax liabilities $47,227$

$1,816,829$

Non$-$current liabilities

Loan and borrowings $100,000$

Lease liabilities $162,846$

Empoloyee benefits $90,592$

Deferred tax liabilities $133,968$

Total $487,406$

Total liabilities $2,304,235$

Total equity and liabilities $2,861,371$

Statement of comprehensive income

Revenue $5,412,180$

Cost of sales $(3,446,678)$

Gross profit $1,965,502$

Other income $-$

Selling and distribution expenses $(946,492)$

Administrative expenses $(211,159)$

Other Expenses $(52,404)$

Reversal of impairment loss on trade receivables $553$

Results from operating activities $756,000$

Finance income $3,538$

Finance cost $(35,466)$

Net finance $($cost$)/$ income $(31,928)$

Share of profit of an equity$-$accounted associate, net of tax $697$

Profit before tax $724,769$

Income tax expense $(172,056)$

Profit net of tax $552,713$

Total comprehensive income attributable to owners of the parent $548,812$

Calculation of relevant asset management ratios

"Provide all the relevant liquidity and asset management ratios were computed correctly for Nestle company.

With detailed workings"

$2\mathrm{.}1\mathrm{.}1$ Net Working Capital

NWC $=$ Current Assets $$ Current Liabilities

$2\mathrm{.}1\mathrm{.}2$ Current ratio

Current ratio $=$ Current Assets $/$ Current Liabilities

$2\mathrm{.}1\mathrm{.}3$ Quick ratio

Quick ratio $=($Current assets $$ Inventory$)/$ Current Liabilities

Calculate relevant asset management ratios with details work

$2\mathrm{.}2\mathrm{.}1$ Account receivable turnover

ART $=$ Credit sales $/$ Accounts receivable

$2\mathrm{.}2\mathrm{.}2$ Average collection period

ACP $=360/$ ART

$2\mathrm{.}2\mathrm{.}3$ Inventory turnover

IVT$=$ Cost of goods sold $/$ Inventory

$2\mathrm{.}2\mathrm{.}4$ Average Inventory Sales Period

AISP $=360/$ IVT

$2\mathrm{.}2\mathrm{.}5$ Non$-$current asset turnover

NCAT $=$ Sales $/$ Net non$-$current assets

$2\mathrm{.}2\mathrm{.}6$ Total asset turnover

TAT $=$ Sales $/$ Total assets

Answer & Explanation Solved by verified expert

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