The comparative statements of Beulah Limited are presented below.

Additional data:
The ordinary shares recently sold at £19.50 per share.

Instructions

Compute the following ratios for 2020.

a. Current ratio.

b. Acid-test ratio.

c. Accounts receivable turnover.

d. Inventory turnover.

e. Profit margin.

f. Asset turnover.

g. Return on assets.

h. Return on ordinary shareholders’ equity.

i. Earnings per share.

j. Price-earnings ratio.

k. Payout ratio.

l. Debt to assets ratio.

m. Times interest earned.

Transcribed Image Text:

Beulah Limited Income Statement For the Years Ended December 31 2020 2019 £500,000 Net sales (all on account) £420,000 Expenses Cost of goods sold Selling and administrative Interest expense 254,000 315,000 120,800 114,800 7,500 6,500 Income tax expense 20,000 15,000 Total expenses 463,300 390,300 £ 36,700 £ 29,700 Net income Beulah Limited Statements of Financial Position December 31 Assets 2020 2019 Plant assets (net) £423,000 £383,000 Current assets Inventory Accounts receivable (net) 80,000 60,000 85,000 75,000 Short-term investments 18,000 15,000 Cash 21,000 18,000 Total current assets 204,000 168,000 Total assets £627,000 £551,000