The following information is extracted from the accounting records of Wango Ltd. 2021 2020 R R Share capital: Ordinary 82 000 114 000 shares Sales 100 000 120 000 Interest expense 2 000 3 000 Dividends 4 000 4 500 Profit before tax 42 000 49 000 Income tax expense 16 000 18 000 Retained earnings 48 500 23 500 Revaluation surplus 10 000 7 000 Current assets 71 000 80 000 Total assets 145 000 172 000 Current liabilities 27 200 26 300 Inventory 36 600 24 300
The following information is extracted from the accounting records of Wango Ltd. 2021 2020 R R Share capital: Ordinary 82 000 114 000 shares Sales 100 000 120 000 Interest expense 2 000 3 000 Dividends 4 000 4 500 Profit before tax 42 000 49 000 Income tax expense 16 000 18 000 Retained earnings 48 500 23 500 Revaluation surplus 10 000 7 000 Current assets 71 000 80 000 Total assets 145 000 172 000 Current liabilities 27 200 26 300 Inventory 36 600 24 300
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
1
Transcribed Image Text:QUESTION 4
Which of the following alternatives represents the correct debt-equity ratio for year 2021?
O A. 50.22%
B. 30.15%
C. 18,89%
D. 17.19%
E. 19,57%
Deent Seinetin
QUESTION 5
Which ratio or ratios measure the overall efficiency of the business in managing its investment in assets and in
generating return to owners?
O A. Profit margin
O B. Return on equity
C. Acid test ratio
) D. Financial leverage
OE Return on assets
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Transcribed Image Text:The following information is extracted from the accounting records of Wango Ltd:
2021
2020
R
R
Share capital: Ordinary
shares
82 000 114 000
Sales
100 000 120 000
Interest expense
2 000
3 000
Dividends
4 000
4 500
Profit before tax
42 000
49 000
Income tax expense
16 000
18 000
Retained earnings
48 500
23 500
Revaluation surplus
10 000
7 000
Current assets
71 000
80 000
Total assets
145 000 172 000
Current liabilities
27 200
26 300
Inventory
36 600
24 300
QUESTION 3
Which of the following alternatives represents the correct return on equity ratio for year 2021?
O A. 58.19%
OB. 29,89%
OC. 51.22%
OD. 32.74%
E. 59,15%
Reset Selection
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