Required: (a) You are required to calculate the following ratios: (iv) Return on Capital Employed (v) Asset turnover (vi) Non-current asset turnover
Required: (a) You are required to calculate the following ratios: (iv) Return on Capital Employed (v) Asset turnover (vi) Non-current asset turnover
Financial Management: Theory & Practice
16th Edition
ISBN:9781337909730
Author:Brigham
Publisher:Brigham
Chapter2: Financial Statements, Cash Flow,and Taxes
Section: Chapter Questions
Problem 15P: Use the following income statement of Elliott Game Theory Consulting to determine its net operating...
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Question
Required:
(a) You are required to calculate the following ratios:
(iv) Return on Capital Employed
(v) Asset turnover
(vi) Non-current asset turnover
(vii)
(viii) Quick Ratio
(ix) Inventory days
(x) Receivables days
(xi) Payable days
(xii) Interest cover
(b) In light of your calculations comment on the performance of the company over the
last two years.
![Marsh Company Income Statement for the year ends
Revenue
Cost of Sales
Gross Profit
Expenses
Operating Profit
Interest Payable
Profit Before Tax
Tax
Profit After Tax
Marsh Company Statement of Financial Position
Non-Current assets
Current assets:
Inventory
Receivables
Cash
Payables
Net current assets
Long term loan
Capital
Retained earnings
2019
£ 000
440
(248)
192
(122)
70
(10)
60
(11)
49
2019
£000
405
45 65 17 7卫 45
7
72
450
100
350
250
100
350
2020
£ 000
330
(192)
138
(88)
50
(10)
40
(7)
33
2020
£000
361
28
46
10
84
32
52
413
100
313
250
63
313](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F3fd9bb9b-67ac-463c-bd3e-ea8703757fa5%2F1a5e29d7-bcb2-49e5-ab32-7bdf7f907ce4%2F6ik984u_processed.png&w=3840&q=75)
Transcribed Image Text:Marsh Company Income Statement for the year ends
Revenue
Cost of Sales
Gross Profit
Expenses
Operating Profit
Interest Payable
Profit Before Tax
Tax
Profit After Tax
Marsh Company Statement of Financial Position
Non-Current assets
Current assets:
Inventory
Receivables
Cash
Payables
Net current assets
Long term loan
Capital
Retained earnings
2019
£ 000
440
(248)
192
(122)
70
(10)
60
(11)
49
2019
£000
405
45 65 17 7卫 45
7
72
450
100
350
250
100
350
2020
£ 000
330
(192)
138
(88)
50
(10)
40
(7)
33
2020
£000
361
28
46
10
84
32
52
413
100
313
250
63
313
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can you please tell me which ones are the current assets, the fixed assets and the non current assets please?
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