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Please calculate the below accounting ratios whilst referring to the attachment. A) Interest Coverage Ratio B) Quick Ratio C) Price of Earnings

Please calculate the below accounting ratios whilst referring to the attachment. A) Interest Coverage Ratio B) Quick Ratio C) Price of Earnings

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 calculate the below accounting ratios whilst referring to the attachment.

A) Interest Coverage Ratio

B) Quick Ratio

C) Price of Earnings

ABC Statement of financial position 2018 2019 $,000 $,000 $,000 Non-current assets: Cost less depreciation 2200 3000 Current assets Inventory 400 450 Receivables 500 600 Cash 100 200 1000 1250 Total asset 3200 4250 Equity Ordinary shares ($1 nominal) 1000 1500 Retained earnings 800 800 Non-current liabilities 10% loan notes 600 750 10% preference shares ($1 nominal) 200 250 Current liabilities Payables 400 650 Taxation 200 300 600 950 Total equity and liabilities 3200 4250 Statement of profit or loss for the year 2018 2019 ended Revenue 3000 4000 Cost of Sales -2400 -2750 Gross Profit 600 1250 Operating Expenses -200 -450 Profit before Interest and Tax 400 800 Interest -60 -60 Profit before Tax 340 740 Income Tax -180 -370 Profit after Tax 160 370 Other Information Total Ordinary Dividend 125 200 Current market price of Ordinary Shares 1.4 1.8
Transcribed Image Text:ABC Statement of financial position 2018 2019 $,000 $,000 $,000 Non-current assets: Cost less depreciation 2200 3000 Current assets Inventory 400 450 Receivables 500 600 Cash 100 200 1000 1250 Total asset 3200 4250 Equity Ordinary shares ($1 nominal) 1000 1500 Retained earnings 800 800 Non-current liabilities 10% loan notes 600 750 10% preference shares ($1 nominal) 200 250 Current liabilities Payables 400 650 Taxation 200 300 600 950 Total equity and liabilities 3200 4250 Statement of profit or loss for the year 2018 2019 ended Revenue 3000 4000 Cost of Sales -2400 -2750 Gross Profit 600 1250 Operating Expenses -200 -450 Profit before Interest and Tax 400 800 Interest -60 -60 Profit before Tax 340 740 Income Tax -180 -370 Profit after Tax 160 370 Other Information Total Ordinary Dividend 125 200 Current market price of Ordinary Shares 1.4 1.8
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