NASACO Ltd., was completely destroyed by fire and all accounting and financial information were burnt. However,...
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NASACO Ltd., was completely destroyed by fire and all accounting and financial information were burnt. However, on going through the Director of Finance's briefcase which was salvaged by the owner, the following key data for the accounts for the year ended June 30, 2005 were found: i) ii) iii) iv) v) vi) vii) viii) ix) X) Current ratio 1.75 Liquid Ratio 1.25 Stock Tumover (Cost of Sales / Closing Stock) 9 Gross Profit Ratio -25% of sales Debt Collection Period - 12 months Reserves and Profit and Loss to Capital - 2 Tumover to Fixed Assets - 1.2 Capital Gearing Ratio - 0.6 Fixed Assets to Net Worth -1.25 Sales for the year Shs. 1.200,000,000 REQUIRED: Reconstruct the Balance Sheet of NASACO Ltd., as at June 30, 2005 using the above information. (12 Marks) NASACO Ltd., was completely destroyed by fire and all accounting and financial information were burnt. However, on going through the Director of Finance's briefcase which was salvaged by the owner, the following key data for the accounts for the year ended June 30, 2005 were found: i) ii) iii) iv) v) vi) vii) viii) ix) X) Current ratio 1.75 Liquid Ratio 1.25 Stock Tumover (Cost of Sales / Closing Stock) 9 Gross Profit Ratio -25% of sales Debt Collection Period - 12 months Reserves and Profit and Loss to Capital - 2 Tumover to Fixed Assets - 1.2 Capital Gearing Ratio - 0.6 Fixed Assets to Net Worth -1.25 Sales for the year Shs. 1.200,000,000 REQUIRED: Reconstruct the Balance Sheet of NASACO Ltd., as at June 30, 2005 using the above information. (12 Marks)
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NAS AC O Ltd balance sheet As at 30062005 Assets Cash 1... View the full answer
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Advertising and Integrated Brand Promotion
ISBN: 978-0538473323
6th edition
Authors: Thomas O'Guinn, Chris Allen, Richard Semenik
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