Financial Accounting and The Financial Statements

Financial Accounting
And
The Financial
Statements

Contents
TASK A...........................................................................................................................................4
1. Annual Depreciation to be charged in income statement of Smilie Nyero for 30th
Sep. 2019:..................................................................................................................................4
2. Carrying amounts of the non-current assets that will be shown in the Statement of
Financial Position at 30 September 2019:............................................................................4
TASK B...........................................................................................................................................4
Operating Profit Ratio:..............................................................................................................4
Profit-after tax Ratio:.................................................................................................................5
TASK C...........................................................................................................................................6
Gearing Ratios:..........................................................................................................................6
Debt Ratio:.................................................................................................................................7
TASK D...........................................................................................................................................7
1. Cash Conversion Cycle (CCC):..........................................................................................7
2. Calculation of the Cash Conversion Cycle for Sainsbury’s Group Plc for the years
2019 and 2018:..........................................................................................................................8
3. Comment:...............................................................................................................................9
REFERENCES............................................................................................................................11

TASK A
1. Annual Depreciation to be charged in income statement of Smilie Nyero for 30th
Sep. 2019:
Motor Vehicle:
£ 44000 x 25% = 11000
Plant and Machinery:
£ 153250/8 years = 19156.25
2. Carrying amounts of the non-current assets that will be shown in the Statement of
Financial Position at 30 September 2019:
Opening
Balance Depreciation
Carrying
Amount
Motor Vehicle: £ 44000 £ 11000 £ 33000
Plant and Machinery: £ 153250 £ 19156.25 £ 134093.75
TASK B
Operating Profit Ratio:
It implies to a profitability performance ratio which is used by companies to assess a
certain percentage of profits, company has produced through basic operations, before
deducting interest expenses and taxes. Simply it assesses though dividing company's
aggregate operating profits by entire amount of revenue (Williams and Dobelman,
2017). Outcome of this ratio is recognised as percentage. It is also termed as EBIT
Margin.
Operating Profit %