A stationery retailer, Millo Trading is located in Malaysia. Millo Trading's financial statements for the year ending 31 July 2021 are as follows: Millo Trading Statement of Profit or Loss for the year ended 31 July 2021 S S 172,000 Sales (-) Cost of sales: Opening inventory Purchases (-) Closing inventory Gross profit (-) Expenses: Profit for the year Millo Trading Statement of Financial Position as at 31 July 2021 $ Non-current assets Current assets: Bank Inventories Trade receivables Total assets Capital (+) Profit for the year (-) Drawings Non-current liabilities. Current liabilities REQUIRED: a) Illustrate and comment on the following ratios: a. Current ratio b. Acid test ratio c. Inventory turnover ratio d. Gross profit margin 82,000 107,000 189,000 -80,000 e. Net profit margin f. Return on capital employed g. Average collection period. 71,000 80,000 83,000 82,000 24,000 -6,000 b) Briefly describe two importance of financial statement analysis. 109,000 63,000 -43,000 20,000 $ 87,000 234,000 321,000 100,000 19,000 202,000 321,000

A stationery retailer, Millo Trading is located in Malaysia. Millo Trading's financial statements for the year ending 31 July 2021 are as follows: Millo Trading Statement of Profit or Loss for the year ended 31 July 2021 S S 172,000 Sales (-) Cost of sales: Opening inventory Purchases (-) Closing inventory Gross profit (-) Expenses: Profit for the year Millo Trading Statement of Financial Position as at 31 July 2021 $ Non-current assets Current assets: Bank Inventories Trade receivables Total assets Capital (+) Profit for the year (-) Drawings Non-current liabilities. Current liabilities REQUIRED: a) Illustrate and comment on the following ratios: a. Current ratio b. Acid test ratio c. Inventory turnover ratio d. Gross profit margin 82,000 107,000 189,000 -80,000 e. Net profit margin f. Return on capital employed g. Average collection period. 71,000 80,000 83,000 82,000 24,000 -6,000 b) Briefly describe two importance of financial statement analysis. 109,000 63,000 -43,000 20,000 $ 87,000 234,000 321,000 100,000 19,000 202,000 321,000

Name: QUESTION 4A stationery retailer, Millo Trading is located in Malaysia
Uploaded: 2024-03-05T11:47:04.000Z
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Description: QUESTION 4A stationery retailer, Millo Trading is located in Malaysia. Millo Trading's financial statementsfor the year ending 31 July 2021 are as follows:Millo TradingStatement of Profit or Loss for the year ended 31 July 2021SS172.000Sales(-) Cost

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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