The following financial statements relate to Inna Projects Limited: Statement of Comprehensive Income for the year ended 30 June 2018 R’000 Sales (Credit) 8 000 Cost of sales 2 000 Gross profit 6 000 Operating expenses 2 800 Operating profit 3 200 Interest expense 220 Profit before tax 2 980 Tax (25%) 745 Profit after tax 2 235 Statement of Financial Position as at 30 June 2018 ASSETS R’000 R’000 Non-current assets 45 320 Current assets 13 980 Inventory 5 080 Debtors 7 600 Bank 1 300 59 300 EQUITY AND LIABILITIES Owners’ equity 54 040 Capital 39 000 Retained income 15 040 Non-current assets 3 000 Current liabilities 2 260 Creditors 2 260 59 300 Note: Inventory on 1 July 2017 amounted R3 000 000. Required: Calculate the following ratios and where applicable round off answers correctly to two decimal places: 2.1 Gross margin (5) 2.2 Inventory turnover (5) 2.3 Debtors collection period (5) 2.4 Return on own capital (5) 2.5 Acid test ratio (5
The following financial statements relate to Inna Projects Limited:
Statement of Comprehensive Income for the year ended 30 June 2018
R’000
Sales (Credit)
8 000
Cost of sales
2 000
Gross profit
6 000
Operating expenses
2 800
Operating profit
3 200
Interest expense
220
Profit before tax
2 980
Tax (25%)
745
Profit after tax
2 235
ASSETS
R’000
R’000
Non-current assets
45 320
Current assets
13 980
Inventory
5 080
Debtors
7 600
Bank
1 300
59 300
EQUITY AND LIABILITIES
Owners’ equity
54 040
Capital
39 000
Retained income
15 040
Non-current assets
3 000
Current liabilities
2 260
Creditors
2 260
59 300
Note: Inventory on 1 July 2017 amounted R3 000 000.
Required:
Calculate the following ratios and where applicable round off answers correctly to two decimal places:
2.1 Gross margin (5)
2.2 Inventory turnover (5)
2.3 Debtors collection period (5)
2.4 Return on own capital (5)
2.5 Acid test ratio (5
Step by step
Solved in 2 steps
