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Current ratio Quick ratio Debtors collection period Inventory turnover Creditors payment period

Current ratio Quick ratio Debtors collection period Inventory turnover Creditors payment period

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Question 4 Alpha Ltd income statement for the year ended 31 December 2016: GHC GHC 000 000 Sales revenue 500 25 Opening inventory Purchases 305 Closing inventory Cost of goods sold Gross profit Other operating expenses Finance cost (30) (300) 200 60 24 (84) 116 Profit Alpha Statement of financial position year ended 31 December 2016 GHC 000 GHC 000 Non-current assets 540 Current assets Inventory Receivables or Debtors Bank 30 62.5 99.5 639.5 Capital reserves Share capital Accumulated profit 126.5 256 382.5 Non-current liabilities Loan notes 200 Current liabilities Creditors 57 639.5 Required: Calculate and comment on the following ratios: (assume that the total sales purchases are o credit) I. II. Current ratio Quick ratio Debtors collection period Inventory turnover Creditors payment period III. IV. V.
Transcribed Image Text:Question 4 Alpha Ltd income statement for the year ended 31 December 2016: GHC GHC 000 000 Sales revenue 500 25 Opening inventory Purchases 305 Closing inventory Cost of goods sold Gross profit Other operating expenses Finance cost (30) (300) 200 60 24 (84) 116 Profit Alpha Statement of financial position year ended 31 December 2016 GHC 000 GHC 000 Non-current assets 540 Current assets Inventory Receivables or Debtors Bank 30 62.5 99.5 639.5 Capital reserves Share capital Accumulated profit 126.5 256 382.5 Non-current liabilities Loan notes 200 Current liabilities Creditors 57 639.5 Required: Calculate and comment on the following ratios: (assume that the total sales purchases are o credit) I. II. Current ratio Quick ratio Debtors collection period Inventory turnover Creditors payment period III. IV. V.
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