4. The following balances were extracted from the books of Jojo Advance Marketing Company Limited on 31 December, 2008 Authorised Capital 300 000 @ $2 per share Paid-Up Capital 40 000 @ $2 per share General Reserves Profit and Loss Appropriation (credit balance) Provision for dividend Accounts receivable Operating expenses Accounts payable Sales (credit sales -60%) Stock at 31 December, 2008 Prepaid Expenses Mortgage Gross profit Bank overdraft (limit $25 000) Non-Current Assets at book Value $ 600 000 80 000 30 000 47 800 10 000 29 700 40 700 25 500 270 000 65 000 600 30 000 158 100 30 000 158 000 Additional information: 1. Stock on 1 January 2008 was $46 900. 2. Accounts Receivable on 1 January, 2008 $32 940. 3. The company normally allows 30 days credit facility to debtors and operates for 300 days in a year. Note: Treat each question independently Required: Using the following information, calculate to two decimal places, the following ratios and percentages. Show full working and formula
4. The following balances were extracted from the books of Jojo Advance Marketing Company Limited on 31 December, 2008 Authorised Capital 300 000 @ $2 per share Paid-Up Capital 40 000 @ $2 per share General Reserves Profit and Loss Appropriation (credit balance) Provision for dividend Accounts receivable Operating expenses Accounts payable Sales (credit sales -60%) Stock at 31 December, 2008 Prepaid Expenses Mortgage Gross profit Bank overdraft (limit $25 000) Non-Current Assets at book Value $ 600 000 80 000 30 000 47 800 10 000 29 700 40 700 25 500 270 000 65 000 600 30 000 158 100 30 000 158 000 Additional information: 1. Stock on 1 January 2008 was $46 900. 2. Accounts Receivable on 1 January, 2008 $32 940. 3. The company normally allows 30 days credit facility to debtors and operates for 300 days in a year. Note: Treat each question independently Required: Using the following information, calculate to two decimal places, the following ratios and percentages. Show full working and formula
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
Related questions
Question
Transcribed Image Text:4.
The following balances were extracted from the books of Jojo Advance
Marketing Company Limited on 31 December, 2008
Authorised Capital 300 000 @ $2 per share
Paid-Up Capital 40 000 @ $2 per share
General Reserves
Profit and Loss Appropriation (credit balance)
Provision for dividend
Accounts receivable
Operating expenses
Accounts payable
Sales (credit sales - 60%)
Stock at 31 December, 2008
Prepaid Expenses
Mortgage
Gross profit
Bank overdraft (limit $25 000)
Non - Current Assets at book Value
$
600 000
80 000
30 000
47 800
10 000
29 700
40 700
25 500
270 000
65 000
600
30 000
158 100
30 000
158 000
Additional information:
1. Stock on 1st January 2008 was $46 900.
2. Accounts Receivable on 1 January, 2008 $32 940.
3. The company normally allows 30 days credit facility to debtors and operates
for 300 days in a year.
Note: Treat each question independently
Required:
Using the following information, calculate to two decimal places, the following
ratios and percentages. Show full working and formula
Transcribed Image Text:i)
ii)
iii)
iv)
v)
vi)
vii)
viii)
Net profit percentage
Current ratio
Earnings per share
Operating expense ratio
Quick asset ratio
Rate of stock turnover
Shareholders' equity ratio
Age of debtors in days
b) Explain the significance of the following ratios:
i) Debt ratio
ii) Rate of return on shareholders' equity
iii) Markup percentage
iv) Stock turnover in days
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Follow-up Question
please kindly provide answers for PART B as well
Solution
by Bartleby ExpertFollow-up Question
pls kindly advise as how did u come to current liabilities as 54500.00, pls provide explanantion and workings
ii)
It measures a company's ability whether the company is able to pay its short-term debts.
Therefore, the current ratio = ($ 95300 / $ 54500) = 1.75 times.
Solution
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