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Income Statement for the Year Ended 31 March 2018 Helibeb pic Scylace pic billion billion ales Income 110.7 Cost of Sales ( 19.7 ) ( 66.5 ) Gross...


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  • calculate the following 13 ratios for two companies.


  1. (i) Return on Capital Employed
  2. (ii) Return on Equity
  3. (iii) Gross Profit Margin
  4. (iv) Net Profit Margin (using profit after taxation)
  5. (v) Inventory Turnover Period
  6. (vi) Receivables Turnover Period
  7. (vii) Payables Turnover Period
  8. (viii) Current Ratio
  9. (ix) Quick Ratio
  10. (x) Gearing
  11. (xi) Interest Cover
  12. (xii) Price to Earnings Ratio
  13. (xiii) Book to Market Ratio



  • decide which one is more suitable as targets for acquisition?
  • options available for financing the acquisitions with pros and cons


  • what is a comprehensive method of analysing and evaluating the liquidity of a corporation?( take account of income, expenditure, cash flows and balance sheet figures)



The company has net assets of £142.6 billion and a cash balance of £692 million

Helibeb plc's market capitalisation is £32.1 billion and Scylace plc's marketcapitalization is £93.4 billion.SOP3Assignment 3.jpgSOP2Assignment 3.jpg


SOP Assignment 2.jpg

SOP Assignment 2.jpg

Income Statement for the Year Ended 31 March 2018
Helibeb pic
Scylace pic
billion
billion
ales Income
110.7
Cost of Sales
( 19.7 )
( 66.5 )
Gross Profit
Sales and Distribution Costs
( 1.3 )
( 16.4 )
Administrative Expenses
(2.9 )
( 18.1 )
Operating Profit
Interest Payable
(0.6 )
(0.8 )
Profit Before Taxation
Taxation
10.3 )
( 1 7 )
Profit After Taxation
Dividend
(0.2 )
(0.3 )
Retained Profit for the Yea

SOP2Assignment 3.jpg

Statement of Financial Position as at 31 March 2018
Helibeb plc
Scylace plc
f billion
f billion
Non-Current Assets
Intangible Assets
6.1
18.5
Property, Plant and Equipment
26.7
13.8
45.2
Current Assets
Inventory
2.3
12.2
Receivables
2.2
13.2
Cash
2.1
4.3
3. 6
29.7
Current Liabilities
Borrowings Repayable within 1
(0.3)
(0.5)
year
Trade Payables
2.0)
(8.8)
(2.3)
(9.3)
Long-Term Liabilities
Long-Term Borrowing
(9.7)
(8.6)
Provisions for Warranties
(0.4)
(3.2)
Deferred Tax
(1.1)
(1.2)
(11.2)
(13.0)
Net Assets
6.9
52.6
Shareholders' Equity
Share Capital
1.5
4.4
Share Premium Account
0.2
1.8
Reserves
5.2
46.4
52.6
4

SOP3Assignment 3.jpg

Cash Flow Statement for the Year Ended 31 March 2018
Helibel
Scylace pl
billion
Ebillion
Cash Flow from Operations
Operating Profit
Add Back Depreciation
Add Back Impairment of Intangible Asset
Decrease / ( Increase ) in Inventor
(0. 2 )
Decrease / ( Increase ) in Receivable
(0.2 )
Increase / ( Decrease ) in Payables
Increase ( Decrease ) in Provisions
Cash Inflow / Outflow ) from Operations
Cash Flow from Taxation
Tax Paid
(0.3)
( 1.5 )
Cash Inflow / ( Outflow ) from Taxation
10.3 )
(1.5 )
Cash Flow from Investing
Development of Intangible Assets
(0.5 )
( 1.1 )
Acquisition of Property Plant and Equipment
( 0.7 )
( 2.3 )
Cash Inflow / ( Outflow ) from Investing
( 1.2 )
(3.4 )
Cash Flow from Financing
Interest Paid
(0.6 )
( 0.7 )
Dividends Paid
(0. 2 )
(0.3 )
New Borrowing
Borrowing Repaid
(0.3 )
10.4 )
Cash Inflow / ( Outflow ) from Financing
( 10 )
( 0.9 )
Net Cash Inflow / Outflow ) for the Yea
( 0. 1 )
Opening Cas
( 18 )
Closing Cas

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