Advise the current and potential shareholders of TAN ple whether they should sell or keep their shares in the company and why. Given that the industry average for some of the ratios are as follows: net profit ratio is 20%, current ratio is 120%, debtors' days 110 days and creditors days 130 days TAN ple has the following trial balance as at 31 of December 2021£Sales Revenues150,000Properties45,000Opening Inventory (as of 1 Jan.2021)15,000Bills expense37,500Prepayments75,000Creditors55,000Cash on Hand37,500Purchases60,000Accruals37,500Debtors22,000Salaries Expense33,000Machines30.000Share Capital112,500355,000355,000 The following information is also available: -I.Closing stock at 31 of December 2021 is £40,000Included in the Bills expense is £12,000 rent paid for the year ended at 30h of June 2022.П.III.Late Salaries of £6,500 for November and December 2021 has not been included inthe Bills expenseRequired: showing full workings, you are required to:Prepare an Income Statement and a Balance Sheet for TAN ple at 31* of December 2021.Analyse the financial position for TAN ple, your analysis should include a discussion oftheir profitability, liquidity, and efficiency positions (three ratios are required for eachposition).A.B.

The information given in the question is as follows: Revenue on Sales 150,000 Properties…

Advise the current and potential shareholders of TAN ple whether they should sell or keep their shares in the company and why. Given that the industry average for some of the ratios are as follows: net profit ratio is 20%, current ratio is 120%, debtors' days 110 days and creditors days 130 days

Advise the current and potential shareholders of TAN ple whether they should sell or keep their shares in the company and why. Given that the industry average for some of the ratios are as follows: net profit ratio is 20%, current ratio is 120%, debtors' days 110 days and creditors days 130 days

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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