Calculate: ROCENet profit margin and Average payable days for 2018 and 2019 For the year ended31 Dec. 2018£000For the year ended31 Dec. 2019£0006,000£0004,800£000Sales revenueCost of salesOpening inventoryPurchases1,2002,7003,900(450)4504,8005,250(900)Less: Closing inventoryGross profitOperating expensesFinance costNet profit(3,450)1,350(600)(150)600(4,350)1,650(675)(300675As at year to 31 Dec.2018As at year to 31 Dec.2019£000Statement of financial position£000£000£0006,000Non-current assetsCurrent assetsInventoryReceivables – tradePrepaymentsCash2,95545090090757501200105152,0708,0709003001,6501,5154,470Issued share capitalShare premium accountRetained earnings9003001,1252,3252,850Non-current liabilities10% loan notesCurrent liabilitiesPayables – tradeAccruals1,5003,000570752,1001206452,2204,4708,070

Return on Capital Employed = Earning before Interest and Tax/ Capital Employed*100 Average payable…

Answered: Calculate: ROCE Net profit margin and…

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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Exercise 13-3 (Algo) Computing and analyzing trend percents LO P1 Sales Cost of goods sold. Accounts receivable 2021 $ 424,322 214,661 20,580 Numerator: 2020 $ 279,159 141, 180 16,303 2019 $ 218,948 112,924 15,042 Compute trend percents for the above accounts, using 2017 as the base year. For each of the three accounts, state whether the situation as revealed by the trend percents appears to be favorable or unfavorable. Trend Percent for Net Sales: 2021: 2020: 2019: 2018: 2017: Is the trend percent for Net Sales favorable or unfavorable? 2018 $ 153,648 78,724 8,973 Denominator: 2017 $ 116,400 58,200 7,973 11 Trend percent % % ge % % %
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Computing and analyzing trend percents LO P1 2021 2020 2019 2018 2017 Sales $ 446,122 $ 293,501 $ 242,563 $ 173,880 $ 128,800 Cost of goods sold 221,100 145,365 122,206 87,101 63,112 Accounts receivable 21,592 17,140 16,664 10,137 8,784 Compute trend percents for the above accounts, using 2017 as the base year. For each of the three accounts, state whether the situation as revealed by the trend percents appears to be favorable or unfavorable.
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Calculate: ROCE Net profit margin and Average payable days for 2018 and 2019