Analyse the performance of Andrew Mitchell plc by calculating the following ratios

Task 3
Andrew Mitchell plc has one major market competitor, Camperlands plc. Ms Cooper
has analysed its final accounts for 2015 and has provided you with the following
information.
Ratios for Camperlands plc:
 Equity (Capital) Gearing Ratio = 1·5:1
 Dividend Yield = 6·24%
 Dividend Cover = 3·15 times
 Earnings per Share = £0·59
 Price/Earnings Ratio = 2·65 times
Using relevant information from Task 1, Ms Cooper wishes you to:
(a) Analyse the performance of Andrew Mitchell plc by calculating the following
ratios:
All ratios should be calculated to two decimal places.
Name of Ratio Formula
Equity (Capital) Gearing
Ratio
(Preference Shares + Long Term Loans): Ordinary
Shares
Dividend Yield Ordinary dividend per share x 100%
Market price per share
Dividend Cover
Profit for the Year (Net Profit) — Preference
dividends
Dividends on ordinary shares
Earnings per Share
Profit for the Year (Net Profit) — Preference
dividends
Number of ordinary shares
Price/Earnings Ratio Market Price per Share
Earnings per Share
(b) Write a short report to the Board of Directors at Andrew Mitchell plc,
comparing the ratios of both companies. Suggest one possible reason for the
difference between each ratio.

Template (Task 2*)
A B C D E F G
Andrew Mitchell plc
Sales Budget for January to June
2016
Jan Feb Mar Apr May Jun
Opening Stock d f f f f f
Purchases d d d d d d
f f f f f f
Closing Stock f f f f f f
Sales f f f f f f
Andrew Mitchell plc
Cash Budget for March to June
2016
Retail (Cash) Selling Price (per unit) d
Wholesale Selling Price (per unit) d
Surcharge (per unit) d
Purchase Price (per unit) d
Selling Expenses (per unit) d
Bonus (per unit) d
Tent Rental Charge d
March April May June
Opening Balance d f f f
Receipts
Retail Cash Sales f f f f
Credit Sales — 1 month f f f f
Credit Sales — 2 months f f f f
Tent Hire Income f f f f
Total Receipts f f f f
Payments
Purchases (Deposit — 20%) f f f f
Purchases (Balance — 80%) f f f f
Selling Expenses f f f f
Bonus f f f f
Fixed Costs d f f f
New Fittings d f f
Total Payments f f f f
Closing Balance f f f f
*Task 2 (b) must be completed using spreadsheet software and printouts
submitted as evidence.

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