Question
In: Accounting
The following financial data relate to Lakme, a cosmetic and toiletries company in the Tata Group...
The following financial data relate to Lakme, a cosmetic and toiletries company in the Tata Group of Companies for the period ending on 31 March 20X6 and 20X7.
Lakme Financial Data for the year ending on 31 March
(Rs. In lakh)
|
Particulars |
20X6 |
20X7 |
|
Revenue |
6561 |
9773 |
|
Operating profit (EBDIT) |
625 |
839 |
|
Depreciation |
88 |
115 |
|
EBIT |
537 |
724 |
|
Interest |
216 |
376 |
|
Tax |
0 |
65 |
|
PAT |
321 |
283 |
|
Share Capital |
316 |
316 |
|
Reserve and Surplus |
1130 |
1264 |
|
Borrowings |
1473 |
1530 |
|
Capital Employed |
2919 |
3110 |
|
Gross Fixed Assets |
1339 |
1589 |
|
Earnings per Share (EPS) |
10.7 |
8.97 |
|
Dividend per share (DPS) |
5.00 |
5.00 |
Discussion Questions
- Comment on Lakme’s performance. Show computation to support your answer.
- How effectively has Lakme used its assets in generating sales?
- Do you think there is appropriate balance between equity and borrowed funds? Show relevant ratios.
- Critically evaluate Lakme’s profitability?
- Does Lakme have sufficient liquidity?
Solutions
ekkarill92 answered 2 years agoRelated Solutions
Case Study 2: Lakme Cosmetics [7.5 Marks] The following financial data relate to Lakme, a cosmetic...
Case Study 2: Lakme Cosmetics [7.5 Marks]
The following financial data relate to Lakme, a cosmetic and
toiletries company in the Tata Group of Companies for the period
ending on 31 March 20X6 and 20X7.
Lakme Financial Data for the year ending on 31 March
(Rs. In lakh)
Particulars
20X6
20X7
Revenue
6561
9773
Operating profit (EBDIT)
625
839
Depreciation
88
115
EBIT
537
724
Interest
216
376
Tax
0
65
PAT
321
283
Share Capital
316
316
Reserve and...
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Mar. 8.
Received a $84,000, 6%, 60-day note on account.
31.
Received a $19,200, 7%, 90-day note on account.
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The following data relate to the operations of Shilow Company, a wholesale distributor of consumer goods:...
The following data relate to the operations of Shilow Company, a
wholesale distributor of consumer goods:
Current assets as of March 31:
Cash
$
9,000
Accounts receivable
$
26,000
Inventory
$
48,600
Building and equipment, net
$
109,200
Accounts payable
$
29,175
Common stock
$
150,000
Retained earnings
$
13,625
The gross margin is 25% of sales.
Actual and budgeted sales data:
March (actual)
$
65,000
April
$
81,000
May
$
86,000
June
$
111,000
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Sales are...
The following data relate to the operations of Shilow Company, a wholesale distributor of consumer goods:...
The following data relate to the
operations of Shilow Company, a wholesale distributor of consumer
goods:
Current assets as of
March 31:
Cash
$
8,700
Accounts receivable
$
24,800
Inventory
$
46,800
Building and
equipment, net
$
116,400
Accounts
payable
$
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Capital stock
$
150,000
Retained
earnings
$
18,650
a.
The gross margin is 25% of
sales.
b.
Actual and budgeted sales
data:
March (actual)
$62,000
April
$78,000
May
$83,000
June
$108,000
July
$59,000
c....
The following data relate to the operations of Shilow Company, a wholesale distributor of consumer goods:...
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wholesale distributor of consumer goods:
Current assets as of March 31:
Cash $
7,700
Accounts receivable $
20,800
Inventory $
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Building and equipment, net $
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Accounts payable $
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Common stock $
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Retained earnings $
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March (actual) $ 52,000
April $ 68,000
May $ 73,000
June $ 98,000
July $ 49,000
Sales are...
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