1. Following is the profit and loss account of a limited companyOpening StockPurchasesGross profit c/d10,000 Sales50,000 Closing Stock50,00090,00020,000110,000110,000Administration ExpensesSelling and Distribution ExpensesGross profit b/d6,0004,00050,000Net Profit40,00050,00050,000Calculate: Gross profit ratio, Net profit ratio

Ratio analysis is referred as the quantitative method of understanding company’s liquidity,…

1. Following is the profit and loss account of a limited company Opening Stock Purchases Gross profit c/d 10,000 | Sales 50,000 Closing Stock 50,000 90,000 20,000 110,000 Administration Expenses Selling and Distribution Expenses 110,000 50,000 Gross profit b/d 6,000 4,000 Net Profit 40,000 50,000 50,000 Calculate: Gross profit ratio, Net profit ratio

1. Following is the profit and loss account of a limited company Opening Stock Purchases Gross profit c/d 10,000 | Sales 50,000 Closing Stock 50,000 90,000 20,000 110,000 Administration Expenses Selling and Distribution Expenses 110,000 50,000 Gross profit b/d 6,000 4,000 Net Profit 40,000 50,000 50,000 Calculate: Gross profit ratio, Net profit ratio

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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The following information have been taken from the LONDON Company: Sales revenue $2,400 Operating expenses 280 Total stockholders' equity 1,220 Ending Inventory 320 Preferred stock dividends $18 Interest expense 40 Tax rate 30% market price $230. Beginning Inventory 2,000 Total common stock $160($10 par) Instruction 1.What is Price-earnings ratio? 2. explain the result. I II !!!
You are presented with the following information: Concord Ld. Trading and profit and loss account for the year ended 31 December 2009 £000 1.000 E000 Sales Less: Cost of goods aold: Opening Stock Purchases 200 700 900 Less: Closing Stock 300 Gross profit Operating expenses Operating profit Debenture interest Net profit before taxation Taxation 600 400 (240) 160 (10) 150 (50) 100 (60) 40 Net profit after taxation Dividends Retained profit for the year Concord Ltd. Balance sheet as at 31 December 2008 C000 2009 L000 E000 FO00 1,050 255 Fixed assets at cost 900 Less: Accumulated Depreciation 150 750 795 Current assets: Stocks Trade debtors Cash 200 120 300 150 20 340 45 495 Less: Current liabilities: Trade creditors Taxation Proposed dividend 70 90 50 40 30 140 60 200 950 200 295 1,090 Capital and resenes: Ordinary shares of £1 each Profit and loss accounts 750 200 950 750 240 990 Loans Debenture stock (10% issued on 1 Jan 2009) 100 1.090 950 Required: Prepare a cash flow statement (in…
5. From the following data, calculate (a) Gross profit ratio (b) Net profit ratio (OReturn on capital employed Sales Closing stock Distribution expenses RO 12,000 Capital employed Opening stock Purchases Administration exp RO 80,000 RO 13,000 RO 15,000 RO 40,000 RO 8,000 RO 95,000
5. From the following data, calculate (a) Gross profit ratio (b) Net profit ratio (c) Return on capital employed Opening stock Purchases Administration exp Sales RO 80,000 RO 13,000 Distribution expenses RO 12,000 RO 95,000 RO 15,000 RO 40,000 RO 8,000 Closing stock Capital employed
Following information is given below for a company Sales during the year : Rs. 5,00,000 Gross profit margin: Opening Stock Closing Stock Direct Expenses Average Creditors : 25% : Rs.37,500 : Rs. 42,500 : Rs.20,000 : Rs.1,75,000 Find out Creditors turnover ratio
Earnings per Share and Price-Earnings Ratio A company reports the following: Net income $460,000 Preferred dividends $40,000 Shares of common stock outstanding 150,000 Market price per share of common stock $40.60 a. Determine the company's earnings per share on common stock. Round your answer to two decimal places. Use the rounded answer of requirement a for subsequent requirement, if required. b. Determine the company's price-earnings ratio. Round your answer to one decimal place.
The following information have been taken from the Muscat Company: Sales Total operating expenses 340 Cost of goods sold $2,830 cash 139 Accounts Receivable Preferred stock dividends 500 1,980 18 Tax rate 30% Interest expense 30 Accounts payable Land Number of shares of common issues Number of preferred shares 240 44 3,000 20 What is the carnings per share? Answer:
The following information pertains to Marsh Company. Assume that all balance sheet amounts represent average balance figures Total asset $400.000 Stockholders' equity-common 200,000 Total stockholders' equity 280,000 Sales 120,000 Net income 30,000 Number of shares of common stock 8,000 Common dividends 6,000 Preferred dividends 4,000 What is Marsh's return on common stockholders' equity? a. 15% b. 13.0% c. 10.0% d. 9.3%
Earnings per share and price-earnings ratio A company reports the following: Line Item Description Amount Net income $650,000 Preferred dividends $45,000 Shares of common stock outstanding 110,000 Market price per share of common stock $44 a. Determine the company's earnings per share on common stock. Round your answer to two decimal places.fill in the blank 1 of 2$ b. Determine the company's price-earnings ratio.
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