Question: Quickserve plc is a food wholesale company.
Quickserve plc is a food wholesale company. Its financial statements for the years ended 31 December 20X8 and 20X9 are as follows:
Required:
(a) Describe the concerns of the following users and how reading an annual report might help satisfy these concerns:
(i) employees;
(ii) bankers;
(iii) shareholders.
(b) Calculate relevant ratios for Quick serve and suggest how each of the above user groups might react to these.
Transcribed Image Text:
Statements of income 20X9 20X8 £000 £000 Sales revenue 12,000 15,000 Gross profit 3,000 3,900 Distribution costs 500 600 Administrative expenses Operating profit 1,500 1,000 1,000 2,300 Interest receivable 80 100 Interest payable _(400) (350) 2,050 Profit before taxation 680 Income taxation 240 720 Profit after taxation 440 1,330 Dividends in SOCE 800 600 Statements of financial position 20X9 20X8 £000 £000 Non-current assets: 200 Intangible assets Tangible assets 4,000 7,000 Investments 600 800 4,800 7,800 Current assets: Inventory 250 300 Trade receivables 1,750 2,500 Cash & bank 1,500 200 3,500 3,000 Total assets 8,300 10,800 Equity and reserves: Ordinary shares of 10p each Share premium account Revaluation reserve 1,000 1,000 1,000 1,000 1,110 1,750 Retained earnings 3,190 3,550 6,300 7,300 Debentures 1,000 2,000 Current liabilities 1,000 8,300 1,500 10,800
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