The financial statements of R Ltd for the year to 30 April 2020 are as follows: 

Note: Dividends of £1,000 (preference) and £20,000 (ordinary) were paid in the year.

Required: 

Insofar as the information given permits, calculate the following ratios for R Ltd for the year to 30 April 2020, stating any assumptions made: 

(a) Return on capital employed 

(b) Return on equity 

(c) Gross profit margin 

(d) Net profit margin 

(e) Current ratio 

(f) Quick assets ratio 

(g) Inventory holding period 

(h) Receivables collection period 

(i) Payables payment period 

(j) Capital gearing ratio 

(k) Interest cover 

(l) Dividend cover 

(m) Earnings per share  

Transcribed Image Text:

R Ltd Statement of comprehensive income for the year to 30 April 2020 Sales revenue Cost of sales Gross profit Operating expenses Profit before interest and taxation Interest payable Profit before taxation Taxation Profit after taxation £000 410 235 175 115 | 89 | 90 | | 60 15 45 10 35