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Calculate:  (i) Return on capital employed (ii) Net profit margin (iii) Total Payable days

Calculate:  (i) Return on capital employed (ii) Net profit margin (iii) Total Payable days

FINANCIAL ACCOUNTING
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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Calculate: 

(i) Return on capital employed
(ii) Net profit margin
(iii) Total Payable days 

For the year ended For the year ended 31 Dec. 2018 31 Dec. 2019 £00 £000 £000 £000 Sales revenue Cost of sales 4,800 6,000 Opening inventory Purchases 1,200 2,700 450 4,800 3,900 (450) 5,250 (900) |Less: Closing inventory Gross profit Operating expenses Finance cost (3,450) (4,350) 1,350 (600) (150) 1,650 (675) (300) Net profit 600 675 As at year to 31 Dec. 2019 £000 6,000 Statement of financial position As at year to 31 Dec. 2018 £000 £000 £000 Non-current assets Current assets Inventory Receivables – trade Prepayments Cash 2,955 450 900 750 1200 105 15 90 75 1,515 2,070 4,470 8,070 Issued share capital Share premium account Retained earnings 900 300 1,125 900 300 1,650 2,325 2,850 Non-current liabilities 10% loan notes Current liabilities Payables – trade Accruals 1,500 3,000 570 2,100 75 645 120 2,220 4,470 8,070
Transcribed Image Text:For the year ended For the year ended 31 Dec. 2018 31 Dec. 2019 £00 £000 £000 £000 Sales revenue Cost of sales 4,800 6,000 Opening inventory Purchases 1,200 2,700 450 4,800 3,900 (450) 5,250 (900) |Less: Closing inventory Gross profit Operating expenses Finance cost (3,450) (4,350) 1,350 (600) (150) 1,650 (675) (300) Net profit 600 675 As at year to 31 Dec. 2019 £000 6,000 Statement of financial position As at year to 31 Dec. 2018 £000 £000 £000 Non-current assets Current assets Inventory Receivables – trade Prepayments Cash 2,955 450 900 750 1200 105 15 90 75 1,515 2,070 4,470 8,070 Issued share capital Share premium account Retained earnings 900 300 1,125 900 300 1,650 2,325 2,850 Non-current liabilities 10% loan notes Current liabilities Payables – trade Accruals 1,500 3,000 570 2,100 75 645 120 2,220 4,470 8,070
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