Statement of Comprehensive Income for the year ended 31 March 2021 Revenue (all credit) Gross profit Operating profit Interest expense Profit before tax Net profit after tax R 610 000 390 000 170 000 17 000 153 000 110 000
Statement of Comprehensive Income for the year ended 31 March 2021 Revenue (all credit) Gross profit Operating profit Interest expense Profit before tax Net profit after tax R 610 000 390 000 170 000 17 000 153 000 110 000
Financial Reporting, Financial Statement Analysis and Valuation
8th Edition
ISBN:9781285190907
Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw
Chapter12: Valuation: Cash-flow Based Approaches
Section: Chapter Questions
Problem 2BIC
Related questions
Question
![You have been provided with the following information for City Projects Ltd:
Statement of Comprehensive Income for the year ended 31 March 2021
R
Revenue (all credit)
Gross profit
Operating profit
Interest expense
610 000
390 000
170 000
17 000|
Profit before tax
153 000
Net profit after tax
110 000
Statement of Financial Position as at 31 March 2021
R
R
Assets
Non -current assets
700 000
Current assets
340 000
Inventory
70 000
REGENT BUSINESS SCHOOL (RBS) JANUARY 2022
16
POSTGRADUATE DIPLOMA IN PROJECT MANAGEMENT - ACADEMIC AND ASSESSMENT CALENDAR
Debtors
150 000
Bank
120 000
1 040 000
Equity and Liabilities
Owners' equity
600 000
Non-current liabilities
300 000
Current liabilities
140 000
1040 000
Required:
Calculate and comment on each of the following ratios (where applicable round off answers to two
decimal places):
4.1 Gross margin
4.2 Current ratio
4.3 Acid-test ratio](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F01b7a54c-2efe-4572-a02a-04be32ac028c%2F347b9bd1-b1db-4643-ba7c-3ee25df1f2d7%2Fdfecsy_processed.png&w=3840&q=75)
Transcribed Image Text:You have been provided with the following information for City Projects Ltd:
Statement of Comprehensive Income for the year ended 31 March 2021
R
Revenue (all credit)
Gross profit
Operating profit
Interest expense
610 000
390 000
170 000
17 000|
Profit before tax
153 000
Net profit after tax
110 000
Statement of Financial Position as at 31 March 2021
R
R
Assets
Non -current assets
700 000
Current assets
340 000
Inventory
70 000
REGENT BUSINESS SCHOOL (RBS) JANUARY 2022
16
POSTGRADUATE DIPLOMA IN PROJECT MANAGEMENT - ACADEMIC AND ASSESSMENT CALENDAR
Debtors
150 000
Bank
120 000
1 040 000
Equity and Liabilities
Owners' equity
600 000
Non-current liabilities
300 000
Current liabilities
140 000
1040 000
Required:
Calculate and comment on each of the following ratios (where applicable round off answers to two
decimal places):
4.1 Gross margin
4.2 Current ratio
4.3 Acid-test ratio
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