QUESTION 2 The following information was taken from the books of DCW Ltd: 31/12/20x3 Inventory Purchases Trade and other payables Investments Furniture Vehicles Sales Customs and excise Net income before interest and taxation Bank overdraft Trade and other receivables 31/12/20x4 Rands 160 000 775 000 210 160 70 000 45 000 85 000 910 000 40 000 94 000 51 320 131 110 Rands 130 000 690 000 124 224 70 000 70 000 40 000 760 000 35 000 75 000 60 000 110 810 ADDITIONAL INFORMATION: R 7 000 interest was paid during the year, while no interest was received. All purchases are on credit and 25% of the sales are for cash. I Assume 360 working days per annum. Calculate the following for the year ended 31 December 20x4: 1. Net profit before interest and tax margin (round off to two decimal places). 2. Debtors' collection period (round off to the nearest whole number). 3. Acid test ratio (round off to two decimal places).

QUESTION 2 The following information was taken from the books of DCW Ltd: 31/12/20x3 Inventory Purchases Trade and other payables Investments Furniture Vehicles Sales Customs and excise Net income before interest and taxation Bank overdraft Trade and other receivables 31/12/20x4 Rands 160 000 775 000 210 160 70 000 45 000 85 000 910 000 40 000 94 000 51 320 131 110 Rands 130 000 690 000 124 224 70 000 70 000 40 000 760 000 35 000 75 000 60 000 110 810 ADDITIONAL INFORMATION: R 7 000 interest was paid during the year, while no interest was received. All purchases are on credit and 25% of the sales are for cash. I Assume 360 working days per annum. Calculate the following for the year ended 31 December 20x4: 1. Net profit before interest and tax margin (round off to two decimal places). 2. Debtors' collection period (round off to the nearest whole number). 3. Acid test ratio (round off to two decimal places).

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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