The following information has been derived from the accounts of Montgomery plc for the year ended 31 December 2005. On 31 December 2005 Current ratio 1.4:1 Quick ratio 0.9:1 Net current assets £32,000 Ordinary share capital in issue £150,000 Fixed assets as a percentage of shareholders’ funds 90% Debtors collection period 6 weeks For the year ended 31 December 2005 Net profit retained for the year as a percentage of ordinary share capital in issue 40% Annual rate of stock turnover 8.775 times Gross profit as a percentage of sales 25 On 31 December 2005 there were no current assets other than stock, debtors and bank balances and no liabilities other than ordinary shareholders’ funds and current liabilities. Assume a 52 week year.Calculate the amount of Montgomery plc current liabilities on 31 December 2005. A £22,857 B £28,800 C £44,800 D £80,000
The following information has been derived from the accounts of Montgomery plc for
the year ended 31 December 2005.
On 31 December 2005
Quick ratio 0.9:1
Net current assets £32,000
Ordinary share capital in issue £150,000
Fixed assets as a percentage of shareholders’ funds 90%
Debtors collection period 6 weeks
For the year ended 31 December 2005
Net profit retained for the year as a percentage
of ordinary share capital in issue 40%
Annual rate of stock turnover 8.775 times
Gross profit as a percentage of sales 25
On 31 December 2005 there were no current assets other than stock, debtors and bank
balances and no liabilities other than ordinary shareholders’ funds and current liabilities.
Assume a 52 week year.Calculate the amount of Montgomery plc current liabilities on 31 December 2005.
A £22,857
B £28,800
C £44,800
D £80,000
Step by step
Solved in 2 steps
