The summarized accounts of Hope (Eternal Springs) Ltd for the years 2015 and 2016 are given below.
Question:
The summarized accounts of Hope (Eternal Springs) Ltd for the years 2015 and 2016 are given below.
Inventory at 1 January 2015 was £50,000.
Required:
(a) Calculate the following ratios for 2015 and 2016:
(1) Gross profit: Sales (2) Inventory turnover (3) Net profit: Sales (4) Quick ('acid test')
(5) Working capital (6) Net profit: Capital employed
(b) State the possible reasons for and significance of any changes in the ratios shown by your calculations
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Related Book For 
Frank Woods Business Accounting Volume 1
ISBN: 9781292084664
13th Edition
Authors: Alan Sangster, Frank Wood
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