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Compute the following for Stanley Limited. Round your answers to two decimal places. All answers MUST be expressed in the unit as specified in the question, if any. Show your workings. (a) Gross Profit Rate (in %) (b) Current Ratio (c) Quick Ratio B Stanley Limited Statement of Financial Position 31 December 2021 ($ in million) Stanley Limited Income Statement For the year ended 31 December 2021 ($ in million) Question B5 (continued) (d) Accounts Receivable Turnover Rate (e) Return on Equity (%) (f) Debt Ratio (in %) (g) Price-Earnings Ratio

Compute the following for Stanley Limited. Round your answers to two decimal places. All answers MUST be expressed in the unit as specified in the question, if any. Show your workings. (a) Gross Profit Rate (in %) (b) Current Ratio (c) Quick Ratio B Stanley Limited Statement of Financial Position 31 December 2021 ($ in million) Stanley Limited Income Statement For the year ended 31 December 2021 ($ in million) Question B5 (continued) (d) Accounts Receivable Turnover Rate (e) Return on Equity (%) (f) Debt Ratio (in %) (g) Price-Earnings Ratio

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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Compute the following for Stanley Limited. Round your answers to two decimal places. All answers MUST be expressed in the unit as specified in the question, if any. Show your workings. (a) Gross Profit Rate (in %) (b) Current Ratio (c) Quick Ratio B Stanley Limited Statement of Financial Position 31 December 2021 ($ in million) Stanley Limited Income Statement For the year ended 31 December 2021 ($ in million) Question B5 (continued) (d) Accounts Receivable Turnover Rate (e) Return on Equity (%) (f) Debt Ratio (in %) (g) Price-Earnings Ratio
Question B5 Below is the condensed statement of financial position and income statement of Stanley Limited: Stanley Limited Statement of Financial Position 31 December 2021 Stanley Limited Income Statement For the year ended 31 December 2021 ($ in million) ($ in million) Cash Accounts receivable Inventory Supplies Property Truck Accumulated depreciation: Truck 195 Sales 3,050 (94) Sales Return and Allowance Net Sales Cost of goods sold Gross profit Operating expenses Operating profit Interest expense 125 225 60 (1,820) 950 100 (30) 1,625 (896) (35) Profit before taxes 205 Income taxes Net profit (57) 148 Accounts payable Income tax payable Unearned revenue Notes payable (due on 31 Dec 2025) Ordinary shares (par: $2.5 each) Share premium: Ordinary shares Retained earnings 220 124 50 405 400 302 124 1,625 Additional Information: (1) Beginning and ending balances of all assets, liabilities and equity items remained almost constant throughout the year. (2) All sales and sales returns are on credit sales. (3) Market price per share on 31 December 2021 was $4.12 per share.
Transcribed Image Text:Question B5 Below is the condensed statement of financial position and income statement of Stanley Limited: Stanley Limited Statement of Financial Position 31 December 2021 Stanley Limited Income Statement For the year ended 31 December 2021 ($ in million) ($ in million) Cash Accounts receivable Inventory Supplies Property Truck Accumulated depreciation: Truck 195 Sales 3,050 (94) Sales Return and Allowance Net Sales Cost of goods sold Gross profit Operating expenses Operating profit Interest expense 125 225 60 (1,820) 950 100 (30) 1,625 (896) (35) Profit before taxes 205 Income taxes Net profit (57) 148 Accounts payable Income tax payable Unearned revenue Notes payable (due on 31 Dec 2025) Ordinary shares (par: $2.5 each) Share premium: Ordinary shares Retained earnings 220 124 50 405 400 302 124 1,625 Additional Information: (1) Beginning and ending balances of all assets, liabilities and equity items remained almost constant throughout the year. (2) All sales and sales returns are on credit sales. (3) Market price per share on 31 December 2021 was $4.12 per share.
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