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Note Current assets (R327 500) include accounts receivable of R168 000, inventories of R75 000 and cash of R84 500. Inventories as at 31 December 2019 amounted to R105 000. Current labiltes comprise accounts payable only. All purchases and sales are on credit REQUIRED Calculate the following ratios. Where applicable, round off answers to two decimal places. Profit margin Debtor collection period Creditor payment period Inventory tumover Return on own capital icid test ratio 1. ...

Note Current assets (R327 500) include accounts receivable of R168 000, inventories of R75 000 and cash of R84 500. Inventories as at 31 December 2019 amounted to R105 000. Current labiltes comprise accounts payable only. All purchases and sales are on credit REQUIRED Calculate the following ratios. Where applicable, round off answers to two decimal places. Profit margin Debtor collection period Creditor payment period Inventory tumover Return on own capital icid test ratio 1. ...

FINANCIAL ACCOUNTING
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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Please answer the last 3 questions
QUESTION 2 The condensed Statement of Comprehensive income, Statement of Financial Position and other financial information for Soori Limited appear below. INFORMATION Soori Limited Statement of comprehensive income for the year ended 31 December R Sales 803 750 (676 500) 127 250 Cost of sales Gross profit Operating expenses Operating profit Interest expense (92 250) 35 000 (12 250) Profit before tax 22 750 Income tax (9 100) Profit after tax 13 650 Statement of Financial Position as at 31 December 2020 Assets R Non-current assets 146 250 Current assets 327 500 Total assets 473 750 Equity and liabilities Shareholders' equity Non-current liabilities 196 650 128 250 Current liabilities Total equity and liabilities 148 850 473 750
Transcribed Image Text:QUESTION 2 The condensed Statement of Comprehensive income, Statement of Financial Position and other financial information for Soori Limited appear below. INFORMATION Soori Limited Statement of comprehensive income for the year ended 31 December R Sales 803 750 (676 500) 127 250 Cost of sales Gross profit Operating expenses Operating profit Interest expense (92 250) 35 000 (12 250) Profit before tax 22 750 Income tax (9 100) Profit after tax 13 650 Statement of Financial Position as at 31 December 2020 Assets R Non-current assets 146 250 Current assets 327 500 Total assets 473 750 Equity and liabilities Shareholders' equity Non-current liabilities 196 650 128 250 Current liabilities Total equity and liabilities 148 850 473 750
Note Current assets (R327 500) include accounts receivable of R168 000, inventories of R75 000 and cash of R84 500. Inventories as at 31 December 2019 amounted to R105 000. Current liabilities comprise accounts payable only. All purchases and sales are on credit. REQUIRED Calculate the following ratios. Where applicable, round off answers to two decimal places. Profit margin Debtor collection period Creditor payment period Inventory turnover Return on own capital icid test ratio
Transcribed Image Text:Note Current assets (R327 500) include accounts receivable of R168 000, inventories of R75 000 and cash of R84 500. Inventories as at 31 December 2019 amounted to R105 000. Current liabilities comprise accounts payable only. All purchases and sales are on credit. REQUIRED Calculate the following ratios. Where applicable, round off answers to two decimal places. Profit margin Debtor collection period Creditor payment period Inventory turnover Return on own capital icid test ratio
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