Describe the five categories of ratios, list and define the ratios in each category and, without referring
Question:
Describe the five categories of ratios, list and define the ratios in each category and, without referring to the calculations in the text, calculate each ratio for Boater plc (financial statements are presented in Table 2.1).
Transcribed Image Text:
Table 2.1 Financial statements of Boater plc Revenue Cost of sales Gross profit Statements of profit or loss for the year ended 31 December Year 2 £000 Administration cost Profit before interest and tax Interest Profit before taxation Taxation Profit after taxation Ordinary dividends Retained profits 5,700 4,330 1,370 735 635 220 415 125 290 230 60 Year 1 £000 5,300 4,000 1,300 620 680 190 490 147 343 230 113 Activate W Go to Settings
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 80% (5 reviews)
The five categories of financial ratios commonly used for financial analysis are Liquidity Ratios Cu...View the full answer
Answered By
Sarfraz gull
have strong entrepreneurial and analytical skills which ensure quality tutoring and mentoring in your international business and management disciplines. Over last 3 years, I have expertise in the areas of Financial Planning, Business Management, Accounting, Finance, Corporate Finance, International Business, Human Resource Management, Entrepreneurship, Marketing, E-commerce, Social Media Marketing, and Supply Chain Management.
Over the years, I have been working as a business tutor and mentor for more than 3 years. Apart from tutoring online I have rich experience of working in multinational. I have worked on business management to project management.
5.00+
3+ Reviews
10+ Question Solved
Related Book For
Corporate Finance Principles And Practice
ISBN: 9781292450940
9th Edition
Authors: Denzil Watson, Antony Head
Question Posted:
Students also viewed these Business questions
-
Estimate the area under the graph in the figure by using (a) The Trapezoidal Rule, (b) The Midpoint Rule, and (c) Simpsons Rule, each with n = 4. 2 3 1
-
Use the Divergence Test to determine whether the following series diverge or state that the test is inconclusive. Data from in Divergence Test Vk + 1
-
Sketch the graph of the function and use it to determine the values of for which limxa exists. 1 x if x
-
H. S. Black is noted for developing a negative feedback amplifier in 1927. Often overlooked is the fact that three years earlier he had invented a circuit design technique known as feed forward...
-
What is the difference between a fraudulent multilevel marketing organization and a legitimate multilevel marketing organization?
-
A jury found defendant, Brent Kerrigan Lawson, guilty of petty theft for stealing a $20 hoodie from a Walmart store . . . On this appeal, defendant claims his conviction for petty theft must be...
-
True or False. Poincar's solution of nonlinear equations is in the form of a series.
-
Boreki Enterprise has the following 10 items in inventory. Theodore Boreki asks you, a recent OM graduate, to divide these items into ABC classification. (a) Develop an ABC classification system for...
-
How strongly do you identify with the company's values, mission, and culture, and to what extent does this alignment influence your sense of belonging ?
-
Why is it difficult to test for strong form efficiency?
-
Discuss the following statement: Ratio analysis using financial statements is pointless. Only economic value added gives a true measure of the financial performance of a company.
-
The fractal called the Sierpinski triangle is the limit of a sequence of figures. Starting with the equilateral triangle with sides of length 1, an inverted equilateral triangle with sides of length...
-
Lamar's capital balance is $40,960 after admitting Terrell to the partnership by investment. If Lamar's ownership interest is 20% of total partnership capital, what were (1) Terrell's cash investment...
-
What did economists discover about the American households' retirement saving according to Andrew Biggs' article? Are most American households saving adequately for their retirement, or is there a...
-
The Smiling Place manufactures extra-whitening toothpaste. During 2002, the company had the following costs: Direct materials used $41,000 Direct labor 28,000 Factory rent 12,000 Equipment...
-
Festive Favours Inc. ( Festive ) wanted to raise cash to fund its expansion into a new market by issuing long - term bonds. On January 1 , 2 0 2 4 , Festive sold $ 2 , 0 0 0 , 0 0 0 in long - term...
-
The accounts listed below appeared in the December 31 trial balance of the Skysong Theater. Debit Credit Equipment $198,576 Accumulated Depreciation-Equipment $61,080 Notes Payable 90,000 Admissions...
-
The following data represent the measure of a variable before and after a treatment. Does the sample evidence suggest that the treatment is effective in increasing the value of the response variable?...
-
Match each of the key terms with the definition that best fits it. _______________ A record of the sequence of data entries and the date of those entries. Here are the key terms from the chapter. The...
-
Your company has been approached to bid on a contract to sell 5,000 voice recognition (VR) computer keyboards per year for four years. Due to technological improvements, beyond that time they will be...
-
The market value balance sheet for Murray Manufacturing is shown here. The company has declared a 25 percent stock dividend. The stock goes ex dividend tomorrow (the chronology for a stock dividend...
-
Fields & Co. expects its EBIT to be $125,000 every year forever. The firm can borrow at 7 percent. The company currently has no debt, and its cost of equity is 12 percent. If the tax rate is 24...
-
An unknown configuration of charges creates a uniform electric field. You do not know the electric field's value, but you do know the electric potential values nearby, V(x). Estimate the magnitude of...
-
Consider the following information and prepare a bank reconciliation, along with any resulting journal entries, for Velor Inc. for the month ended June 30, 2024. Please enter journal entries for each...
-
Polar Coordinates Another way of specifying a vector is to give its length and the angle it encloses with the axes of the coordinate system. This can be done in two and in three dimensions, but gets...
Study smarter with the SolutionInn App