Calculate stuck turnover ratio The details of ABC Company are as under:60% (Cash sales)Sales20,000,000Cost of sales12,000,000Gross profitoffice exp.(including interest on debenturesselling exp.2,000,0001,800,000profit before taxesTaxes300,000Net profitThe opening stock was420,000Taking360 days of the yearsParticular2$Particular2$35,000,000 fixed assets10% preference share capital 24,000,000 Stock1,200,000 Debtors11,000,000 Bills receivable1,200,000 cashEquity share capital63,888,500165,000Reserves4,000,00010% debentures65,000Creditors3,521,000bank-overdraft1,200,000fictitious assets2,000,000Bills payable35,000outstanding expenses4,50073,639,50073,639,500

Average stock = (Beginning stock + Ending stock) / 2 = (420000+165000)/2 = $292,500

The details of ABC Company are as under: 60% (Cash sales) Sales 20,000,000 Cost of sales 12,000,000 Gross profit office exp.(including interest on debentures 2,000,000 selling exp. 1,800,000 profit before taxes Taxes 300,000 Net profit The opening stock was 420,000 Taking 360 days of the years Particular Particular 35,000,000 fixed assets 10% preference share capital 24,000,000 Stock Equity share capital 63,888,500 165,000 Reserves 1,200,000 Debtors 4,000,000 11,000,000 Bills receivable 1,200,000 cash 1,200,000 fictitious assets 10% debentures 65,000 Creditors 3,521,000 bank-overdraft 2,000,000 Bills payable 35,000 outstanding expenses 4,500 73,639,500 73,639,500

The details of ABC Company are as under: 60% (Cash sales) Sales 20,000,000 Cost of sales 12,000,000 Gross profit office exp.(including interest on debentures 2,000,000 selling exp. 1,800,000 profit before taxes Taxes 300,000 Net profit The opening stock was 420,000 Taking 360 days of the years Particular Particular 35,000,000 fixed assets 10% preference share capital 24,000,000 Stock Equity share capital 63,888,500 165,000 Reserves 1,200,000 Debtors 4,000,000 11,000,000 Bills receivable 1,200,000 cash 1,200,000 fictitious assets 10% debentures 65,000 Creditors 3,521,000 bank-overdraft 2,000,000 Bills payable 35,000 outstanding expenses 4,500 73,639,500 73,639,500

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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Question

Calculate stuck turnover ratio

The details of ABC Company are as under:
60% (Cash sales)
Sales
20,000,000
Cost of sales
12,000,000
Gross profit
office exp.(including interest on debentures
selling exp.
2,000,000
1,800,000
profit before taxes
Taxes
300,000
Net profit
The opening stock was
420,000
Taking
360 days of the years
Particular
2$
Particular
2$
35,000,000 fixed assets
10% preference share capital 24,000,000 Stock
1,200,000 Debtors
11,000,000 Bills receivable
1,200,000 cash
Equity share capital
63,888,500
165,000
Reserves
4,000,000
10% debentures
65,000
Creditors
3,521,000
bank-overdraft
1,200,000
fictitious assets
2,000,000
Bills payable
35,000
outstanding expenses
4,500
73,639,500
73,639,500

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