Required:(a) You are required to calculate the following ratios:(iv) Return on Capital Employed(v) Asset turnover(vi) Non-current asset turnover(vii) Current Ratio(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 thelast two years. Marsh Company Income Statement for the year endsRevenueCost of SalesGross ProfitExpensesOperating ProfitInterest PayableProfit Before TaxTaxProfit After TaxMarsh Company Statement of Financial PositionNon-Current assetsCurrent assets:InventoryReceivablesCashPayablesNet current assetsLong term loanCapitalRetained earnings2019£ 000440(248)192(122)70(10)60(11)492019£00040545 65 17 7卫 457724501003502501003502020£ 000330(192)138(88)50(10)40(7)332020£00036128461084325241310031325063313

Lets understand the basics. Return on capital employed ratio shows how much earning before interest…

Answered: Required: (a) You are required to…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

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) Current Ratio
(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

Expert Solution

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Follow-up Questions

Read through expert solutions to related follow-up questions below.

Follow-up Question

can you please tell me which ones are the current assets, the fixed assets and the non current assets please?

Solution

by Bartleby Expert

SEE SOLUTION

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions