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
Related questions
Question
![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.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Fe53463f7-7ad7-44f6-bcdd-4fa06cbc33f8%2F480089fc-9aa1-4237-b0ae-46e02e9a49db%2Fpnfbcag_processed.jpeg&w=3840&q=75)
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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