Homework Help is Here – Start Your Trial Now!
Business
Accounting
Question: 7. Quick assets ratio or Quick ratio or Acid test ratio (need interpretation) Current assets – stock at end of period/current liabilities at end of period

Question: 7. Quick assets ratio or Quick ratio or Acid test ratio (need interpretation) Current assets – stock at end of period/current liabilities at end of period

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
See similar textbooks
icon
Related questions
Question

Question:

7. Quick assets ratio or Quick ratio or Acid test ratio (need interpretation)

Current assets – stock at end of period/current liabilities at end of period

2009 Full year forecast and extracts from 5 year plan Extracts from CeeCee's accounts: Extracts from 5 year plan Latest Full year Note: All figures shown in the financial data below are forecast Statement of Comprehensive Income, Statement of Financial Position and Statement of Changes in Equity based on 2009 prices Statement of Comprehensive Income Year ended 31 December 2007 Year ended 31 December 2008 2009 2010 2011 2012 2013 2014 € million € million Number of shops: End year Sales revenue 2,700 2,084 2,358 1,824 630 650 672 702 750 800 Operating costs Average for year 620 640 661 687 726 775 Operating profit Finance costs (net) Tax expense (effective tax rate is 30%) 616 534 22 26 178 152 Sales area for all shops Profit for the period 416 (square metres) 356 Statement of Financial Position As at 31 December 2008 As at 31 December 2007 Average for year 648,000 680,000 713,200 752,400 808,800 879,600 € million €million € million € million € million € million € million € million € million € million Non-current assets (net) 1,438 1,363 Sales revenue 2,781 2,985 3,319 3,781 4,390 5,156 Current assets Trade receivables Inventory Cash and cash equivalents 24 20 Operating profit 286 234 634 690 780 896 1,045 1,237 313 174 623 428 Total assets 2,061 1,791 * Sales revenue for 2010 to 2014 includes sales revenue generated by shops and online trading Equity and liabilities Equity Share capital Share premium Retained earnings 50 50 40 40 1,038 830 1,128 920 Non-current liabilities 300 300 Current liabilities Trade payables Тах рayable 455 178 419 152 633 571 Total equity and liabilities 2,061 1,791 Note: Paid in share capital represents 100 million shares of €0.50 each at 31 December 2008 Statement of Changes in Equity Share сapltal Share premium Retained earnings Total € million € million € million € million Balance at 31 December 2007 Profit for the period Dividends paid 50 40 830 416 920 416 208 208 Balance at 31 December 2008 50 40 1,038 1,128
Transcribed Image Text:2009 Full year forecast and extracts from 5 year plan Extracts from CeeCee's accounts: Extracts from 5 year plan Latest Full year Note: All figures shown in the financial data below are forecast Statement of Comprehensive Income, Statement of Financial Position and Statement of Changes in Equity based on 2009 prices Statement of Comprehensive Income Year ended 31 December 2007 Year ended 31 December 2008 2009 2010 2011 2012 2013 2014 € million € million Number of shops: End year Sales revenue 2,700 2,084 2,358 1,824 630 650 672 702 750 800 Operating costs Average for year 620 640 661 687 726 775 Operating profit Finance costs (net) Tax expense (effective tax rate is 30%) 616 534 22 26 178 152 Sales area for all shops Profit for the period 416 (square metres) 356 Statement of Financial Position As at 31 December 2008 As at 31 December 2007 Average for year 648,000 680,000 713,200 752,400 808,800 879,600 € million €million € million € million € million € million € million € million € million € million Non-current assets (net) 1,438 1,363 Sales revenue 2,781 2,985 3,319 3,781 4,390 5,156 Current assets Trade receivables Inventory Cash and cash equivalents 24 20 Operating profit 286 234 634 690 780 896 1,045 1,237 313 174 623 428 Total assets 2,061 1,791 * Sales revenue for 2010 to 2014 includes sales revenue generated by shops and online trading Equity and liabilities Equity Share capital Share premium Retained earnings 50 50 40 40 1,038 830 1,128 920 Non-current liabilities 300 300 Current liabilities Trade payables Тах рayable 455 178 419 152 633 571 Total equity and liabilities 2,061 1,791 Note: Paid in share capital represents 100 million shares of €0.50 each at 31 December 2008 Statement of Changes in Equity Share сapltal Share premium Retained earnings Total € million € million € million € million Balance at 31 December 2007 Profit for the period Dividends paid 50 40 830 416 920 416 208 208 Balance at 31 December 2008 50 40 1,038 1,128
Summary of CeeCee's shops and relevant key statistics Year ended 31 December 2007 Year ended Year ended 31 December 2008 31 December 2009 Actual Latest full year forecast Actual Number of shops: Start of year Large Medium 60 164 300 80 190 100 210 300 Small 300 Total 524 570 610 New shop openings Large Medium 20 26 20 10 10 20 Small Total 46 40 20 End of year Large Medium 100 80 190 110 220 210 Small 300 300 300 Total 570 610 630 Average for the year Large Medium Small 70 90 177 300 200 300 105 215 300 Total 547 590 620 Total sales area (all shops) (square metres) - end year 568,000 632,000 664,000 - average for the year 532,400 600,000 648,000 Average sales area (square metres) 973 1017 1045 Average sales revenue per square metre 4,429 4,500 4,292 | Average gross margin % 59.8% 60.1% 59.1% Operating profit (before finance costs and €m 534 616 634 tax) Average operating profit % 22.6% 22.8% 22.8%
Transcribed Image Text:Summary of CeeCee's shops and relevant key statistics Year ended 31 December 2007 Year ended Year ended 31 December 2008 31 December 2009 Actual Latest full year forecast Actual Number of shops: Start of year Large Medium 60 164 300 80 190 100 210 300 Small 300 Total 524 570 610 New shop openings Large Medium 20 26 20 10 10 20 Small Total 46 40 20 End of year Large Medium 100 80 190 110 220 210 Small 300 300 300 Total 570 610 630 Average for the year Large Medium Small 70 90 177 300 200 300 105 215 300 Total 547 590 620 Total sales area (all shops) (square metres) - end year 568,000 632,000 664,000 - average for the year 532,400 600,000 648,000 Average sales area (square metres) 973 1017 1045 Average sales revenue per square metre 4,429 4,500 4,292 | Average gross margin % 59.8% 60.1% 59.1% Operating profit (before finance costs and €m 534 616 634 tax) Average operating profit % 22.6% 22.8% 22.8%
Expert Solution
steps

Step by step

Solved in 2 steps

SEE SOLUTIONCheck out a sample Q&A here
Blurred answer
Knowledge Booster
Ratio Analysis
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.
Similar questions
Recommended textbooks for you
FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
Accounting
ISBN:
9781259964947
Author:
Libby
Publisher:
MCG
Accounting
Accounting
Accounting
ISBN:
9781337272094
Author:
WARREN, Carl S., Reeve, James M., Duchac, Jonathan E.
Publisher:
Cengage Learning,
Accounting Information Systems
Accounting Information Systems
Accounting
ISBN:
9781337619202
Author:
Hall, James A.
Publisher:
Cengage Learning,
Horngren's Cost Accounting: A Managerial Emphasis…
Horngren's Cost Accounting: A Managerial Emphasis…
Accounting
ISBN:
9780134475585
Author:
Srikant M. Datar, Madhav V. Rajan
Publisher:
PEARSON
Intermediate Accounting
Intermediate Accounting
Accounting
ISBN:
9781259722660
Author:
J. David Spiceland, Mark W. Nelson, Wayne M Thomas
Publisher:
McGraw-Hill Education
Financial and Managerial Accounting
Financial and Managerial Accounting
Accounting
ISBN:
9781259726705
Author:
John J Wild, Ken W. Shaw, Barbara Chiappetta Fundamental Accounting Principles
Publisher:
McGraw-Hill Education
SEE MORE TEXTBOOKS