The trading account of Calypso Ltd for the year ended 30 June 2005 is set out below: £ £ 430,000 Sales Opening stock 50,000 Purchases 312,500 362,500 Closing stock 38,000 Cost of sales 324,500 Gross profit 105,500 The following amounts have been extracted from the company’s balance sheet at 30 June 2005. £ Trade debtors 60,000 Prepayments 4,000 Cash in hand 6,000 Bank overdraft 8,000 Trade creditors 40,000 Accruals 3,000 Proposed dividends 5,000 In the questions that follow assume a year to be 365 days and ignore VAT. Calculate the current ratio of Calypso Ltd at 30 June 2005. A 1.25:1 B 1.93:1 C 2.04:1 D 2.12:1
The trading account of Calypso Ltd for the year ended 30 June 2005 is set out below: £ £ 430,000 Sales Opening stock 50,000 Purchases 312,500 362,500 Closing stock 38,000 Cost of sales 324,500 Gross profit 105,500 The following amounts have been extracted from the company’s balance sheet at 30 June 2005. £ Trade debtors 60,000 Prepayments 4,000 Cash in hand 6,000 Bank overdraft 8,000 Trade creditors 40,000 Accruals 3,000 Proposed dividends 5,000 In the questions that follow assume a year to be 365 days and ignore VAT. Calculate the current ratio of Calypso Ltd at 30 June 2005. A 1.25:1 B 1.93:1 C 2.04:1 D 2.12:1
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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The trading account of Calypso Ltd for the year ended 30 June 2005 is set out below:
£ £
430,000
Sales
Opening stock 50,000
Purchases 312,500
362,500
Closing stock 38,000
Cost of sales 324,500
Gross profit 105,500
The following amounts have been extracted from the company’s
30 June 2005.
£
Trade debtors 60,000
Prepayments 4,000
Cash in hand 6,000
Bank overdraft 8,000
Trade creditors 40,000
Accruals 3,000
Proposed dividends 5,000
In the questions that follow assume a year to be 365 days and ignore VAT.
Calculate the
A 1.25:1
B 1.93:1
C 2.04:1
D 2.12:1
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