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APX Co achieved a revenue of $16 million in the year that has just ended and expects revenue growth of 8.4% in the next year.
The financial statements of APX Co for the year that has just ended contain the following statement of financial position:

  $m $m
Non-current assets   22.0
Current assets    
Inventory 2.4  
Receivables 2.2  
    4.6
Total assets   26.6
     
Equity finance: $m $m
Ordinary shares 5.0  
Reserve 7.5  
    12.5
Long-term bank loan   10.0
    22.5
     
Current liabilities    
Trade payables 1.9  
Overdraft 2.2  
    4.1
Total Equity and liabilities   26.6

The long-term bank loan has a fixed annual interest rate of 8% per year. APX Co pays taxation at an annual rate of 30% per year.
The following accounting ratios have been forecast for the next year:
Gross profit margin:              30%
Operating profit margin:         20%
Dividend payout ratio:            50%
Inventory turnover period:      110 days
Trade receivables period:       65 days
Trade payables period:          75 days
Overdraft interest in the next year is forecast to be $140,000. No change is expected in the level of non-current assets and depreciation should be ignored.

Requirements:

a

Prepare a statement of profit or loss for the next year for APX Co using the information provided

Marks: 4
b

Prepare a statement of financial position at the end of the next year for APX Co using the information above

Marks: 5
c

Analyze and discuss the working capital financing policy of APX Co

Marks: 6
d

Discuss the role of financial intermediaries in providing short-term finance for use by business organizations.

Marks: 5

Answers submitted

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Md. Mahmudul Hasan Shimul's picture
Md. Mahmudul Ha...
02/28/2021 - 21:51
d
6614
5
Lokonath Debnath's picture
Lokonath Debnath
11/30/2020 - 21:16
c
10182
6
Rakhi Gupta's picture
Rakhi Gupta
10/26/2020 - 09:24
a
9922
4
Rakhi Gupta's picture
Rakhi Gupta
10/26/2020 - 09:35
b
9924
5
Rakhi Gupta's picture
Rakhi Gupta
10/26/2020 - 10:04
c
9926
6
Rakhi Gupta's picture
Rakhi Gupta
10/26/2020 - 10:16
d
9928
5
Tanbirul Kabir Tanbir's picture
Tanbirul Kabir ...
10/24/2020 - 15:47
a
9904
4
Tanbirul Kabir Tanbir's picture
Tanbirul Kabir ...
10/24/2020 - 16:13
b
9906
5
Tanbirul Kabir Tanbir's picture
Tanbirul Kabir ...
10/24/2020 - 16:44
c
9908
6
Tanbirul Kabir Tanbir's picture
Tanbirul Kabir ...
10/24/2020 - 17:00
d
9910
5
Rakhi Gupta's picture
Rakhi Gupta
10/13/2020 - 13:37
a
9786
4
Rakhi Gupta's picture
Rakhi Gupta
10/13/2020 - 14:34
b
9788
5
Rakhi Gupta's picture
Rakhi Gupta
10/13/2020 - 15:04
c
9790
6
Rakhi Gupta's picture
Rakhi Gupta
10/13/2020 - 15:21
d
9792
5
MD. Mayan Ahmmad's picture
MD. Mayan Ahmmad
09/13/2020 - 06:24
a
9682
4
MD. Mayan Ahmmad's picture
MD. Mayan Ahmmad
09/13/2020 - 06:42
b
9684
5
MD. Mayan Ahmmad's picture
MD. Mayan Ahmmad
09/13/2020 - 08:33
c
9688
6