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Using the information provided in the picture, complete the calculation of accounting ratios and percentages and comment briefly on the performance of the company for the two years.

Using the information provided in the picture, complete the calculation of accounting ratios and percentages and comment briefly on the performance of the company for the two years.

SWFT Essntl Tax Individ/Bus Entities 2020
SWFT Essntl Tax Individ/Bus Entities 2020
23rd Edition
ISBN:9780357391266
Author:Nellen
Publisher:Nellen
Chapter3: Taxes On The Financial Statements
Section: Chapter Questions
Problem 2BD
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Using the information provided in the picture, complete the calculation of accounting ratios and
percentages and comment briefly on the performance of the company for the two
years. 

As audit manager, you are conducting a preliminary analytical review and associated risk analysis for this client for the year ended June 30 2019. You have been presented with the following draft financial information about Analita with incomplete ratios and percentages calculation. Revenue Cost of sales Gross Profit Distribution costs Administrative expenses Selling expenses Profit from operations Net interest receivable Profit before tax Income tax expense Net profit Retained profits Dividends paid INCOME STATEMENT Accounting ratios and percentages Earnings per share Performance ratios include the following: Gross margin ((Gross profit/revenue) Expenses as a percentage of revenue: Distribution costs Administrative expenses Selling expenses Operating profit as a percentage of revenue Year ended June 30 2019 $'000 18,406 5,609 12,797 3,598 1164 4,442 3,593 1245 4,838 2,209 2,629 1,327 $1,302,000 0.54 ? ? ? ? ? 2018 $'000 16,529 5,057 11,472 2,896 1,998 474 6,104 495 6,599 1,852 4,747 3,777 $970,000 1-25 ? ? ? ? ?
Transcribed Image Text:As audit manager, you are conducting a preliminary analytical review and associated risk analysis for this client for the year ended June 30 2019. You have been presented with the following draft financial information about Analita with incomplete ratios and percentages calculation. Revenue Cost of sales Gross Profit Distribution costs Administrative expenses Selling expenses Profit from operations Net interest receivable Profit before tax Income tax expense Net profit Retained profits Dividends paid INCOME STATEMENT Accounting ratios and percentages Earnings per share Performance ratios include the following: Gross margin ((Gross profit/revenue) Expenses as a percentage of revenue: Distribution costs Administrative expenses Selling expenses Operating profit as a percentage of revenue Year ended June 30 2019 $'000 18,406 5,609 12,797 3,598 1164 4,442 3,593 1245 4,838 2,209 2,629 1,327 $1,302,000 0.54 ? ? ? ? ? 2018 $'000 16,529 5,057 11,472 2,896 1,998 474 6,104 495 6,599 1,852 4,747 3,777 $970,000 1-25 ? ? ? ? ?
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