Income Statement for the year ending 31 December 2012 Sales revenue 75 000 Beginning inventory Purchases 12 000 40 000 52 000 Less ending inventory Cost of goods sold Gross profit Less expenses Net Income (8 000) 44 000 31 000 21 000 10 000 The following list of balances was also provided: Capital Buildings Inventory Accounts payable ( Creditors) Cash Bank overdraft Accounts receivable ( Debtors) Motor vehicles 50 000 26 500 8 000 10 000 6 500 5 000 14 000 20 000 (a) Using the information given, calculate the following ratios: • Net income margin Return on capital invested Rate of turnover

Income Statement for the year ending 31 December 2012 Sales revenue 75 000 Beginning inventory Purchases 12 000 40 000 52 000 Less ending inventory Cost of goods sold Gross profit Less expenses Net Income (8 000) 44 000 31 000 21 000 10 000 The following list of balances was also provided: Capital Buildings Inventory Accounts payable ( Creditors) Cash Bank overdraft Accounts receivable ( Debtors) Motor vehicles 50 000 26 500 8 000 10 000 6 500 5 000 14 000 20 000 (a) Using the information given, calculate the following ratios: • Net income margin Return on capital invested Rate of turnover

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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