Unit: Financial Management
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Login to Access| 2023 | 2024 | 2025 | |
| Sh.“000” | Sh.“000” | Sh.“000” | |
| Inventory | 195,000 | 360,000 | 195,000 |
| Trade receivables | 367,500 | 468,000 | 600,000 |
| Cash | 150,000 | 81,000 | 34,500 |
| Current assets | \(\overline{712,500}\) | \(\overline{909,000}\) | \(\overline{972,000}\) |
| Current liabilities | 300,000 | 450,000 | 675,000 |
| \(\overline{\underline{412,500}}\) | \(\overline{\underline{459,000}}\) | \(\overline{\underline{297,000}}\) |
| Additional information: | Sh. | Sh. | |
| 1 | 2024 | 2025 | |
| Credit sales | 2,250,000 | 2,295,000 | |
| Cost of goods sold | 1,680,000 | 1,800,000 | |
| 2. | Assume 365 days in a year. | ||
| 2022 Sh.“000” | 2023 Sh.“000” | 2024 Sh.“000” | |
| Cash | 1,683 | 1,161 | 606 |
| Accounts receivable | 5,889 | 8,610 | 12,153 |
| Inventories | 6,093 | 7,839 | 9,861 |
| Current assets | 13,665 | 17,610 | 22,620 |
| Net fixed assets | 7,743 | 13,290 | 13,092 |
| Total assets | 21,408 | 30,900 | 35,712 |
| Accounts Payable | 5,586 | 8,832 | 10,839 |
| Accruals | 903 | 1,548 | 1,761 |
| Bank loan | 750 | 2,700 | 3,150 |
| Current liabilities | 7,239 | 13,080 | 15,750 |
| Long-term debt | 1,500 | 3,000 | 2,850 |
| Shareholder’s equity | 12,669 | 14,820 | 17,112 |
| Total liabilities and shareholders equity | 21,408 | 30,900 | 35,712 |
| Sales | 35,589 | 44,856 | 49,047 |
| Cost of goods sold | (25,611) | (33,372) | (36,048) |
| Selling, general and administrative expenses | (6,828) | (7,413) | (8,379) |
| Interest | (219) | (564) | (600) |
| Profit before taxes | 2,931 | 3,507 | 4,020 |
| Taxes | (1,170) | (1,356) | (1,728) |
| Profit after taxes | (1,761) | (2,151) | (2,292) |
| Sh.“000” | |
| Net profit after tax | 2,000 |
| Dividend payable for the period | (500) |
| Transfer to reserves | 1,500 |
| Accumulated reserves brought forward | 700 |
| Accumulated reserves carried forward | 2,200 |
| Ordinary share capital (Sh.20 par value) | 16,000 |
| Sh. | |
| Net sales | 3,000,000 |
| Current liabilities | 1,500,000 |
| Debt-assets ratio | 0.6 |
| Debtors turnover based on net sales | 2 |
| Net profit margin | 5% |
| Gross profit margin | 25% |
| Inventory turnover ratio | 1.25 |
| Return on total assets | 2% |
| Fixed asset turnover | 0.8 |
| Corporation tax rates | 50% |
| 1 | Current assets | 65% |
| 2 | Accounts payable | 10% |
| 3 | Non-current assets | 25% |
| 4 | Other current liabilities | 12% |
| Utamu Enterprises Statement of financial position as at 31 December 2022 | ||
| Sh. | Sh. | |
| Non-current assets | 2,500,000 | |
| Current assets | 6,500,000 | |
| Total assets | 9,000,000 | |
| Current liabilities: | ||
| Accounts payable | 1,000,000 | |
| Notes payable | 1,200,000 | |
| Other current liabilities | 1,200,000 | 3,400,000 |
| Equity and non-current obligations: | ||
| Ordinary share capital | 2,000,000 | |
| Retained earnings | 2,600,000 | |
| Long term loan | 1,000,000 | 5,600,000 |
| Total equity and non-current obligations | 9,000,000 | |
| 2022 | 2021 | |
| Sh.“000” | Sh.“000” | |
| Net sales | 52,678.5 | 46,485 |
| Cost of goods sold | (19,039.5) | (16,632) |
| Gross margin | 33,639 | 29,853 |
| Selling and administrative expenses | (19,737) | (17,037) |
| Other operating expenses | (1,228.5) | (469.5) |
| Operating income | 12,673.5 | 12,346.5 |
| Interest expense | (1,099.5) | (532.5) |
| Other income (net expenses) | 9,715.5 | 1,482 |
| Income before taxes | 21,289.5 | 13,296 |
| Income tax expense | (3,576) | (3,060) |
| Net income | 17,713.5 | 10,236 |
| Jolop Ltd. Statement of comprehensive income for the year ended 31 December 2021 | ||
| Sh."000" | Sh."000" | |
| Sales | 200,000 | |
| Less: Sales returns | 5,000 | 195,000 |
| Cost of sales: | ||
| Opening stock | 3,000 | |
| Purchases | 127,000 | |
| Closing stock | (5,000) | (125,000) |
| Gross profit | 70,000 | |
| Other income (loss): | ||
| Loss on sale of plant | (5,000) | |
| ividend received | 10,000 | |
| Total revenue | 75,000 | |
| Less expenses: | ||
| Administrative expenses | 15,000 | |
| Distribution expenses | 20,000 | (35,000) |
| Net income/profit | 40,000 | |
| Jolop Ltd.
Statement of financial position as at 31 December 2021 | |
| Assets | Sh."000" |
| Non-current assets: | |
| Land | 150,000 |
| Building | 200,000 |
| Plant and equipment | 200,000 |
| Total non-current assets | 550,000 |
| Current assets: | |
| Inventory | 80,000 |
| Accounts receivable | 50,000 |
| Bank balances | 20,000 |
| Total current assets | 150,000 |
| Total assets | 700,000 |
| Equity and liabilities: | |
| Equity | |
| Equity share capital (50 million shares of Sh.10 each) | 500,000 |
| General reserve | 50,000 |
| Retained earnings | 70,000 |
| Total equity | 620,000 |
| Current liabilities: | |
| Accounts payable | 80,000 |
| Total equity and liabilities | 700,000 |
| Sh."000" | |
| Profit after tax | 12,000 |
| 10% Debenture | 12,000 |
| Ordinary share capital (Sh.20 par value) | 80,000 |
| 1 | The market price per share is Sh.72. |
| 2 | The corporate tax rate is 30%. |
| Statement of financial position | |
| As at 31 December 2020 | |
| Assets: | Sh. "million" |
| Non-current assets | 250 |
| Current assets | 150 |
| 400 | |
| Financed by: | |
| Debt | 140 |
| Equity | 260 |
| 400 | |
| Statement of profit or loss | |
| For the year ended 31 December 2020 | |
| Sh. "million" | |
| Net sales | 650 |
| Cost of sales | (150) |
| Gross profit | 500 |
| Operating expenses | (200) |
| Operating profit | 300 |
| Interest expense | (30) |
| Profit before tax | 270 |
| Corporation tax | (81) |
| Profit after tax | 189 |
| Sh."000" | Sh."000" | ||
| Cash | ? | Notes payable | 100,000 |
| Accounts receivable | ? | Long term debt | ? |
| Plant and equipment | ? | Ordinary shares | 100,000 |
| Retained earnings | 100,000 | ||
| Total Assets | ? | Total Liabilities | ? |
| Long term debt to equity ratio | 0.5 to 1.0 |
| Total assets turnover | 2.5 times |
| Average collection period (Assume 360 days in a year and that all sales are on credit) | 18 days |
| Inventory turnover | 9 times |
| cid test ratio | 1 to 1 |
| Gross profit margin | 0.1 |
| 2018 Sh."000" | 2017 Sh."000" | |
| Income statement: | ||
| Earnings before interest and tax (EBIT) | 29,498 | 27.012 |
| Interest | (3,106) | (3,726) |
| Tax | (8,694) | (7,452) |
| Earnings after interest and tax (EAIT) | 17,698 | 15,834 |
| Dividend payable | 9,600 | 6,200 |
| Statement of financial position: | ||
| Shareholders' funds | 79,800 | 70,174 |
| Long-term debt | 28,000 | 35,000 |
| 107,800 | 105,174 |
| Additional information: | ||||
| 2018 | 2017 | |||
| 1. | The number of outstanding shares ("000") | 28,000 | 28,000 | |
| 2. | Price-earnings (P/E) ratio: | Hakika Ltd. | 14.00 | 13.00 |
| Industry | 15.20 | 15.00 | ||
| Income statement for the year ended 30 September 2018: | ||||
| ABC Ltd. Sh. "million" | XYZ Ltd. Sh. "million" | |||
| Revenues | 4,000 | 6,000 | ||
| Cost of sales | (3,000) | (4,800) | ||
| Gross profit | 1,000 | 1,200 | ||
| Expenses: | ||||
| Distribution costs | 200 | 150 | ||
| Administration expenses | 290 | 250 | ||
| Finance costs | 10 | (500) | 400 | (800) |
| Profit before tax | 500 | 400 | ||
| Tax paid | (120) | (90) | ||
| Profit after tax | 380 | 310 | ||
| Dividends paid | (150) | (100) | ||
| Retained profits for the year | 230 | 210 | ||
| Retained profit brought forward | 220 | 2,480 | ||
| Retained profit carried forward | 450 | 2,690 | ||
| Statement of financial position as at 30 September 2018: | ||||
| ABC Ltd. Sh. "million" | XYZ Ltd. Sh. "million" | |||
| Non-current assets: | ||||
| Land and buildings | 1,200 | 5,000 | ||
| Furniture and motor vehicles | 600 | 1,000 | ||
| 1,800 | 6,000 | |||
| Current assets: | ||||
| Inventories | 400 | |||
| Trade receivables | 850 | |||
| Financial assets | 100 | |||
| Cash at bank | - | 1,350 | 1,880 | |
| 3,150 | 7,880 | |||
| Financed by: | ||||
| Equity and liabilities: | ||||
| Ordinary share capital | 1,000 | 1,600 | ||
| Retained profits | 450 | 2,690 | ||
| 1,450 | 4,290 | |||
| Non-current liabilities: | ||||
| Bank loan | 500 | 3,000 | ||
| Current liabilities: | ||||
| Trade payables | 1,080 | 590 | ||
| Bank overdraft | 120 | 1,200 | - | 590 |
| 3,150 | 7,880 | |||
| Opening stock | Sh.450,000 |
| Stock turnover ratio | 10 times |
| Net profit margin | 15% |
| Gross profit margin | 20% |
| Current ratio | 4:1 |
| Long-term loan | Sh.1,000,000 |
| Depreciation of fixed assets (10%) | Sh.100,000 |
| Closing stock | Sh.510,000 |
| Bokasa Limited statement of financial position as at 31 December: | ||||
Sh."000" | 2015 Sh."000" | Sh."000" | 2016 Sh."000" | |
| Non-current assets | 4,995 | 12,700 | ||
| Current assets: | ||||
| Inventory | 40,145 | 50,455 | ||
| Accounts receivable | 40,210 | 43,370 | ||
| Cash at bank | 12,090 | 92,447 | 5,790 | 99,615 |
| Total assets | 97,442 | 112,315 | ||
| Current liabilities: | ||||
| Accounts payable | 34,389 | 39,250 | ||
| Taxation | 2,473 | 3,260 | ||
| 36,862 | 42,475 | |||
| Long-term liabilities: | ||||
| 10% loan notes | 19,840 | 19,480 | ||
| Total liabilities | (56,702) | (62,315) | ||
| Net assets | 40,740 | 50,000 | ||
| Equity: | ||||
| Called-up share capital Sh.0.25 per share | 9,920 | 9,920 | ||
| Retained earnings | 30,820 | 40,080 | ||
| Shareholders' funds | 40,740 | 50,000 | ||
| Bokasa Limited income statement for the year ended 31 December: | ||
| 2015 Sh."000" | 2016 Sh."000" | |
| Revenue | 486,300 | 583,900 |
| Operating profit | 17,233 | 20,670 |
| Interest payable | 1,984 | 1,986 |
| Profit before taxation | 15,254 | 18,686 |
| Taxation | 5,734 | 7,026 |
| Profit for the year | 9,520 | 11,660 |
| Notes: | 31 December 2015 Sh."000" | 31 December 2016 Sh."000" | |
| 1 | Retained profit brought forward | 23,540 | 30,820 |
| 2 | Dividends paid during the year | 2,240 | 2,400 |
| Total assets | Sh.7,000,000 |
| Total liabilities | Sh.4,000,000 |
| Preference share capital | Sh.500,000 |
| Earnings per share (EPS) | Sh.1.10 |
| Price-earnings (P/E) ratio | 15 |
| Outstanding number of ordinary shares | 400,000 |
| Sh."000" | |
| Plant and machinery | 31,200 |
| Furniture and fittings | 18.720 |
| Motor vehicles | 12,480 |
| Inventory | 19,200 |
| Account receivablés | 14,400 |
| Cash and bank | 3,600 |
| 99,600 | |
| Financed by: | |
| Ordinary share capital | 42,000 |
| Retained profit | 17,600 |
| 14% debenture capital | 10,000 |
| Account payables | 18,000 |
| Accrued expenses | 12,000 |
| 99,600 |
| Sh. | |
| Total sales | 3,000,000 |
| Variable costs | (900,000) |
| Contribution | 2,100,000 |
| Fixed costs | (1,500,000) |
| Earning before interest and tax (EBIT) | 600,000 |
| Interest | (75,000) |
| Profit before tax | 525,000 |
Cash and cash equivalents Fixed assets Sales (credit) Net income Current liabilities Notes payable to bank Current ratio Debtors collection period Return on equity | Sh."millions" 200 567 2,000 100 211 40 3:1 40.55 days 12% |
| Earnings yield Dividend for the year Nominal value per share Market price per share | 25% 10% of share nominal value Sh.40 Sh.150 |
| Upendo Ltd. Statement of financial position As at 30th November 2014 | |||
Inventory Debtors Cash at bank Fixed assets (NBV) | Sh."000" 2,000 3,000 3,800 13,200 22,000 | Trade creditors Accrued expenses Long-term debt Ordinary shares Retained profit | Sh."000" 2,200 2,200 8,800 2,200 6,600 22,000 |