The following figures were taken from the books of Pat Marshall and Sons. Opening Capital Closing...

 

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The following figures were taken from the books of Pat Marshall and Sons. Opening Capital Closing Capital Working Capital Current Assets Fixed Assets Long-term Liabilities Current Liabilities Net Profit 2012 £90,000 £126,000 £7,000 £22,000 £169,000 £50,000 £15,000 £36,000 2013 £126,000 £159,000 £13,000 £27,000 £206,000 £60,000 £14,000 £33,000 (a) Calculate appropriate ratios for this business for the 2 years. (b) (i) Comment briefly on any difference in the ratios between the years. (ii) Suggest why any differences may have taken place. (c) Closing Capital could be less than Opening Capital. Suggest 2 reasons why this might occur. The following figures were taken from the books of Pat Marshall and Sons. Opening Capital Closing Capital Working Capital Current Assets Fixed Assets Long-term Liabilities Current Liabilities Net Profit 2012 £90,000 £126,000 £7,000 £22,000 £169,000 £50,000 £15,000 £36,000 2013 £126,000 £159,000 £13,000 £27,000 £206,000 £60,000 £14,000 £33,000 (a) Calculate appropriate ratios for this business for the 2 years. (b) (i) Comment briefly on any difference in the ratios between the years. (ii) Suggest why any differences may have taken place. (c) Closing Capital could be less than Opening Capital. Suggest 2 reasons why this might occur.

Answer rating: 100% (QA)

a Profit Margin Net Profit Revenue 2012 13000 490000 27 2013 27000 201000 134 Asset Turnover Revenue ... View the full answer