Question 2
ICAN
•
2025
•
FINANCIAL REPORTING
•
mixed
Case Stimulus
Statement of profit or loss for the year ended December 31,
2024 2023
N‟m N‟m
Revenue 44,800 14,400
Cost of sales (26,880) (5,760)
Gross profit 17,920 8,640
Selling expenses (4,320) (2,400)
Bad debt -written off (2,240) (288)
Depreciation (3,328) (928)
Interest expense (3,072) (192)
Net profit before tax 4,960 4,832
Statement of financial position as at December 31,
2024 2023
N‟m N‟m
Non-current assets:
Property, plant and equipment 35,712 15,040
Current assets:
Inventory 3,808 480
Trade receivables 9,328 1,328
Cash and bank
Total assets
Equity and liabilities:
Share capital
Retained earnings
Equity
Non-current liabilities:
Borrowings
Current liabilities:
Trade payables
-
13,136
48,848
5,248
15,024
20,272
25,600
2,800
192
2,000
17,040
4,800
10,064
14,864
1,600
576
Bank overdraft -
576
Total equity and liabilities 48,848 17,040
The following are the financial statements of Odot Ventures Nigeria Limited for the years ended December 31, 2023 and 2024.
Requirements
(
a
)
Calculate the following profitability and liquidity ratios for years 2023 and 2024.
(
b
)
Explain whether the financial performance and position of the company has improved for the year ended December 31, 2024 as a result of the new policies adopted by the company.
(
c
)
Calculate the amount of cash which would be realised if the company could impose a debt collection period of 45 days. Note: All revenue are on credit.
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About This Question
This is
Ican
2025
Financial Reporting
Question 2.
It is one of the
mixed
questions from the
2025
Ican
Financial Reporting
examination.