Financial Data

for Introduction to Accounting and Economics

Summer 2023

Important notes
• The financial data for Introduction to Accounting and Economics will change
every assessment cycle.
• You must ensure that your students have the correct financial data for the
assessment cycle to which they are registered before beginning work on the
assignment for Introduction to Accounting and Economics.
• The assignment for Introduction to Accounting and Economics is open-
ended, which means it will NOT change until Autumn 2024. You can use the
Autumn 2021-Autumn 2024 assignment with this financial data for the
assessment cycle indicated at in the title of this document.

Page 1 of 4
Introduction to Accounting and Economics – Financial © NCC Education Limited Summer 2023
Data
Income statement for the year ended 31st May Year 2 Year 1
£’000 £’000
Sales revenue 103 97
Cost of sales -55 -56
Gross profit 48 41
Distribution costs -18 -16
Administrative expenses -20 -16
Operating profit 10 9
Finance income 2 0
Finance cost- Interest Cost -4 -2
Profit for the year 8 7

Profit brought forward from previous year 7 5

Retained Profits 15 12

Page 2 of 4
Introduction to Accounting and Economics – Financial © NCC Education Limited Summer 2023
Data
Statement of financial position as at 31st May Year 2 Year 1
£’000 £’000 £’000 £’000
Non-current assets (net book value) 60 51
Current assets:
Inventory 12 12
Trade receivables 32 22
Bank 9 53 5 39
113 90
Share capital 26 21
Retained profits 15 41 12 33
Non-current liabilities:
Loans 24 21
Deferred tax liabilities 4 28 2 23
Current liabilities:
Trade payables 24 21
Loans and borrowings 11 9
Current tax liabilities 5 2
Interest Payable 4 44 2 34
113 90

Note: All purchases and sales are on credit terms.

-END-

Page 3 of 4
Introduction to Accounting and Economics – Financial © NCC Education Limited Summer 2023
Data
 Extracted information from statement of Year 2 Year 1
cashflows for the year ended 31st May
£’000 £’000 £’000 £’000

Net cash from operating activities 2 0

2275 55
Net cash used in investing activities -4 -2
-2 -2

Dividends paid to equity owners -1 -1

Other net cash flows from financing activities 7 1

Net cash flows from financing activities 6 0

Net increase/(decrease) in cash and cash 4 -2

equivalents

Calculate the following ratios for each year to one decimal place. Use end of year figures as
insufficient detail is available to calculate averages.

a. Gross profit margin

b. Operating profit margin

c. Return on capital employed

d. Liquidity ratio

e. Acid test ratio

f. Inventories turnover period

g. Settlement period for trade receivables

h. Settlement period for trade payables

i. Gearing ratio

j. Interest cover

Page 4 of 4
Introduction to Accounting and Economics – Financial © NCC Education Limited Summer 2023
Data