Brad’s Engineering Pty Ltd
Statement of financial positions as at 30 June Total Current Assets Total Fixed Assets TOTAL ASSETS Total Current Liabilities Long-term Liabilities TOTAL LIABILITIES NET ASSETS (Assets - Liabilities) SHAREHOLDERS’ EQUITY Share capital Reserves and retained profits Additional Information: Net profit after interest & tax Interest expense Taxation expense 2015$11,08075,000$86,0803,40020,000$23,400$62,6804000022,680$62,602015$10,8602,0003,0002014$10,28042,000$52,2801,9608,500$10,460$41,8203000011,820$41,8202014$6,0009001,500
REQUIRED:
a)From the information provided above,calculate each of the following ratios for each of the years ending 30 June 2014 and 2015.
Gearing ratio.Use formula
Share capital and reserves + long term liabilitiesLong term liabilities
Interest cover ratio.Use formula
Interest Profit before interest and tax
b)Comment on the movements in the ratios over the two years and the adequacy of the level of gearing and interest cover.
Definitions:
Excess Transpiration
The condition where a plant loses more water than necessary through its stomata, which can lead to dehydration.
Turgor Pressure
The internal pressure exerted by water pushing against the cell wall, which helps maintain plant structure and firmness.
Absorbing Water
The process by which water molecules are taken in by a material or organism.
Leaf Abscission
The process by which a plant sheds its leaves, often in response to environmental factors or seasonal changes to conserve resources.