The directors of Helena Beauty Products Ltd have been presented with the following abridged financial statements:
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Helena Beauty Products Ltd Income statement for the year ended 30 September |
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|
2009 |
2010 |
|||||
|
£000 |
£000 |
£000 |
£000 |
|||
|
Sales revenue |
3,600 |
3,840 |
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|
Cost of sales |
||||||
|
Opening inventories |
320 |
400 |
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|
Purchases |
2,240 |
2,350 |
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|
2,560 |
2,750 |
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|
Closing inventories |
(400) |
(2,160) |
(500) |
(2,250) |
||
|
Gross profit |
1,440 |
1,590 |
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|
Expenses |
(1,360) |
(1,500) |
||||
|
Profit |
80 |
90 |
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|
Statement of financial position as at 30 September |
||
|
2009 |
2010 |
|
|
£000 |
£000 |
|
|
ASSETS |
||
|
Non-current assets |
||
|
Property, plant and equipment |
1,900 |
1,800 |
|
Current assets |
||
|
Inventories |
400 |
500 |
|
Trade receivables |
750 |
960 |
|
Cash at bank |
8 |
4 |
|
1,158 |
1,464 |
|
|
3,058 |
3,324 |
|
|
EQUITY AND LIABILITIES |
||
|
£1 ordinary shares |
1,650 |
1,766 |
|
Reserves |
1,018 |
1,108 |
|
2,668 |
2,874 |
|
|
Current liabilities |
390 |
450 |
|
Total equity and liabilities |
3,058 |
3,324 |
Required:
Using six ratios, comment on the profitability (three ratios) and efficiency (three ratios) of the business as revealed by the statements shown above.