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Kigamboni Ltd Financial Analysis 2022-2023

The document presents the financial performance of Kigamboni Ltd for the years 2022 and 2023, including profit and loss statements and financial position summaries. It highlights key figures such as revenue, gross profit, and total assets, along with industry performance metrics like Return On Capital Employed and asset turnover. The assignment requires the calculation of specific financial ratios and an analysis of the company's performance based on these metrics.

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erickdominick21
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12 views2 pages

Kigamboni Ltd Financial Analysis 2022-2023

The document presents the financial performance of Kigamboni Ltd for the years 2022 and 2023, including profit and loss statements and financial position summaries. It highlights key figures such as revenue, gross profit, and total assets, along with industry performance metrics like Return On Capital Employed and asset turnover. The assignment requires the calculation of specific financial ratios and an analysis of the company's performance based on these metrics.

Uploaded by

erickdominick21
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

AC 122: INTERMEDIATE ACCOUNTING

INDIVIDUAL ASSIGNMENT
QUESTION

The following summarised information has been extracted from the accounts of Kigamboni Ltd
for the years ended 31 December 2023 and 31 December 2022.

Statements of Profit and Loss


2023 2022
TZS ’000 TZS ’000
Revenue 1,150 1,766
Cost of sales (684) (1,141)
Gross profit 466 625
Expenses (338) (472)
Interest on loans (26) (33)
Profit before tax 102 120
Tax 30 36
Profit after tax 72 84

Statements of Financial Position


2023 2022
TZS ’000 TZS ’000 TZS ’000 TZS ’000
Non-current assets 979 653
Current assets
Inventory 120 115
Trade receivables 183 145
Bank 18 321 25 285
Total assets 1,300 938

Share capital and reserves 340 325


Long term loans 660 500
Current liabilities 300 113
Total equity and liabilities 1,300 938

The current industry performance in which Kigamboni Ltd operates are as


follows:Return On Capital Employed (ROCE) 21.2%
Asset turnover 2.28
Gross profit margin 38.2%
Acid test ratio 1.5:1
Receivables collection period 35 days

Required;
a) Calculate the following ratios for Kigamboni Ltd for both years (2022 and 2023).
i) Return On Capital Employed (ROCE)
ii) Asset turnover
iii) Gross profit margin
iv) Acid test ratio
v) Receivables collection period

b) Using the additional information given and the ratios you calculated in part (a), comment on
the financial performance of Kigamboni Ltd.

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