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INFORMATION Extracts of the financial statements of Turbo Limited for 2022 are given below. TURBO LIMITED STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER 2022 Sales Cost of sales Operating profit Interest expense Profit before tax Profit after tax STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2022 Non-current assets Current assets Equity Non-current liabilities Current liabilities Note: 1. Inventories on 31 December 2022 amounted to R360 000. 2. The issued share capital of Turbo Limited consisted of 2 000 000 ordinary shares. Total dividends for the year ended 31 December 2022 amounted to R225 000. Credit terms to debtors are 30 days. 3. 4. R 8 000 000 5 400 000 1 000 000 90 000 900 000 630 000 R 000 000 5 2 000 000 5400 000 900 000 700 000

INFORMATION Extracts of the financial statements of Turbo Limited for 2022 are given below. TURBO LIMITED STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER 2022 Sales Cost of sales Operating profit Interest expense Profit before tax Profit after tax STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2022 Non-current assets Current assets Equity Non-current liabilities Current liabilities Note: 1. Inventories on 31 December 2022 amounted to R360 000. 2. The issued share capital of Turbo Limited consisted of 2 000 000 ordinary shares. Total dividends for the year ended 31 December 2022 amounted to R225 000. Credit terms to debtors are 30 days. 3. 4. R 8 000 000 5 400 000 1 000 000 90 000 900 000 630 000 R 000 000 5 2 000 000 5400 000 900 000 700 000

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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REQUIRED 3.1 3.1.1 3.1.4 3.1.5 Use the information provided below to calculate the ratio (expressed to two decimal would reflect each of the following 3.1.2 The company's net income as a percentage of the company's net sales. 3.1.3 The ability of the company to generate profits from its shareholders investments in the 3.1.6 3.1.7 The amount of funds available relative to sales, to pay the company's expenses other than its cost of sales (expressed as a percentage) company. A measure of the dividend pay-out per share of the company's ordinary shares. The capacity of the company to pay off its current commitments using just its most liquid assets. The degree to which the company's assets are financed by debt. A measure of how easily the company can pay the interest on its outstanding debt.
Transcribed Image Text:REQUIRED 3.1 3.1.1 3.1.4 3.1.5 Use the information provided below to calculate the ratio (expressed to two decimal would reflect each of the following 3.1.2 The company's net income as a percentage of the company's net sales. 3.1.3 The ability of the company to generate profits from its shareholders investments in the 3.1.6 3.1.7 The amount of funds available relative to sales, to pay the company's expenses other than its cost of sales (expressed as a percentage) company. A measure of the dividend pay-out per share of the company's ordinary shares. The capacity of the company to pay off its current commitments using just its most liquid assets. The degree to which the company's assets are financed by debt. A measure of how easily the company can pay the interest on its outstanding debt.
INFORMATION Extracts of the financial statements of Turbo Limited for 2022 are given below. TURBO LIMITED STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER 2022 Sales Cost of sales Operating profit Interest expense Profit before tax Profit after tax STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2022 Non-current assets Current assets Equity Non-current liabilities Current liabilities Note: 1. 2. 3. 4. Inventories on 31 December 2022 amounted to R360 000. The issued share capital of Turbo Limited consisted of 2 000 000 ordinary shares. Total dividends for the year ended 31 December 2022 amounted to R225 000. Credit terms to debtors are 30 days. R 8 000 000 5 400 000 1 000 000 90 000 900 000 630 000 R 000 000 5 2 000 000 5 400 000 900 000 700 000
Transcribed Image Text:INFORMATION Extracts of the financial statements of Turbo Limited for 2022 are given below. TURBO LIMITED STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31 DECEMBER 2022 Sales Cost of sales Operating profit Interest expense Profit before tax Profit after tax STATEMENT OF FINANCIAL POSITION AS AT 31 DECEMBER 2022 Non-current assets Current assets Equity Non-current liabilities Current liabilities Note: 1. 2. 3. 4. Inventories on 31 December 2022 amounted to R360 000. The issued share capital of Turbo Limited consisted of 2 000 000 ordinary shares. Total dividends for the year ended 31 December 2022 amounted to R225 000. Credit terms to debtors are 30 days. R 8 000 000 5 400 000 1 000 000 90 000 900 000 630 000 R 000 000 5 2 000 000 5 400 000 900 000 700 000
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