financial ratios

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Tutorial 13
Question 1
State the formula and the reason for calculating the following ratios:
(i)
(ii)
(iii)
(iv)
(v)
(a)
Current ratio;
Inventories turnover days;
Receivables collection period;
Gearing ratio;
Interest cover.
(b)
Briefly explain FOUR (4) uses of financial ratios.
Transcribed Image Text:Tutorial 13 Question 1 State the formula and the reason for calculating the following ratios: (i) (ii) (iii) (iv) (v) (a) Current ratio; Inventories turnover days; Receivables collection period; Gearing ratio; Interest cover. (b) Briefly explain FOUR (4) uses of financial ratios.
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