Calculate the following: 1. Sales amount 2. Net profit after tax 3. Receivable turnover ratio 4....
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Calculate the following: 1. Sales amount 2. Net profit after tax 3. Receivable turnover ratio 4. Current ratio 5. Quick ratio 6. Debt to equity ratio 7. Return on equity Q2- interpret your answers in Q1 and give your analysis of the financial situation of ABC. You answer will have to be supported by your ratio calculations in Q1. ABC Company Ltd (ABC) provides you the following information and balance sheet as of December 31, 2020: Uab llities Equity shares capital @ Rs. 100 Preference shares capital 85 Debentures Current liabilities General reserve P&Laccount last year P&L account current year Other information. Balance Sheet Assets 200,000 Fixed assets 50,000 Long term investment 50,000 Other quick assets 180,000 Closing stock 180,000 Preliminary expenses 131,750 Account receivable 55,750 Amount 475,000 50,000 135,000 20,000 10,000 157.500 847 500 Fixed assets turnover ratio was 3 times for the year: Net profit margin before interest and income taxes was 10% of the opening stock sales. Company is within 50% tax brackets. Working days during the year were 360 days. Calculate the following: 1. Sales amount 2. Net profit after tax 3. Receivable turnover ratio 4. Current ratio 5. Quick ratio 6. Debt to equity ratio 7. Return on equity Q2- interpret your answers in Q1 and give your analysis of the financial situation of ABC. You answer will have to be supported by your ratio calculations in Q1. ABC Company Ltd (ABC) provides you the following information and balance sheet as of December 31, 2020: Uab llities Equity shares capital @ Rs. 100 Preference shares capital 85 Debentures Current liabilities General reserve P&Laccount last year P&L account current year Other information. Balance Sheet Assets 200,000 Fixed assets 50,000 Long term investment 50,000 Other quick assets 180,000 Closing stock 180,000 Preliminary expenses 131,750 Account receivable 55,750 Amount 475,000 50,000 135,000 20,000 10,000 157.500 847 500 Fixed assets turnover ratio was 3 times for the year: Net profit margin before interest and income taxes was 10% of the opening stock sales. Company is within 50% tax brackets. Working days during the year were 360 days.
Expert Answer:
Answer rating: 100% (QA)
To calculate the financial ratios and items requested Ill use the following formulas based on the provided balance sheet information and additional details Lets calculate each in order 1 Sales amount ... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
Students also viewed these accounting questions
-
List three specific parts of the Case Guide, Objectives and Strategy Section (See below) that you had the most difficulty understanding. Describe your current understanding of these parts. Provide...
-
The following balances/data were extracted from the accounting records of Benta Ltd on 28 February 2020, the end of their financial year: R Share capital (900 000 shares at R2 par value) 1 800 000...
-
Billy Bob's Manufacturing had the following data for the fiscal year ended December 31. $ 32,400 378,000 372,600 Direct Materials Inventory, January 1 Direct materials purchases Direct materials used...
-
Discuss the salient features of the international monetary system.
-
Suppose you are a supervisor. What errors might you make when preparing the performance appraisal on a clerical employee? How might you avoid those errors?
-
Explain how you would use the five tips to track the economy to form an outlook of the economy and job market you are hoping to enter after finishing your education. Go online to find data that will...
-
Assuming that no questions are left unanswered, in how many ways can a ten-question yes or no quiz be answered?
-
Describe how organizations use symbols and stories to communicate values and beliefs. Give some examples of organizations symbols or stories with which you are familiar.
-
You are the Director of Human Resources at a city. Describe your responsibilities and tasks to fulfill the requirements of "Affirmative Action" in detail .
-
Kennedy Prisby, age 33, is single and has no dependents. Her social security number is 111-22-3333. Her address is 101 North Fork Ave., Cedar City, UT 84720. She has no intention of donating to the...
-
Which of the following groups has the primary responsibility for establishing generally accepted accounting principles for business entities in the United States? a. Internal Revenue Service. b. IFRS...
-
Fung is planning for the correct after tax and after inflation real rate of return to use. If inflation will be 1.3%, the average rate of return on his investments will be 4.9%, and the tax rate on...
-
1. Exactly five years ago, Lee Corp. issued bonds with an original maturity of 25 years.These bonds pay interest semiannually, and have a fixed coupon rate of 6.5%.These bonds are currently trading...
-
Someone offers to sell you an annuity for $6,036 in 5 years (i.e., you will buy it at t=5). The annuity pays $2300 per year, for n years, starting in year 6, and we assume a 7.0% discount rate. About...
-
what extent does the narrative voice function as a conduit for the exploration of existential themes such as alienation, authenticity, and the search for meaning, as authors deploy various rhetorical...
-
Use the SkyCiv Software to neatly draw the shear and bending moment diagrams for the 2 problems assigned to you. On each diagram, identify the minimum and maximum values. Note: on Problem 4, treat...
-
How much interest is owed on a $2,100 debt borrowed at 5.25% for 90 days? Calculate.
-
Ann hires a nanny to watch her two children while she works at a local hospital. She pays the 19 year-old nanny $125 per week for 48 weeks during the current year. a. What is the employers portion of...
-
Ann hires a nanny to watch her two children while she works at a local hospital. She pays the 19-year-old nanny $125 per week for 48 weeks during the current year. a. What is the employer's portion...
-
On February 2, 2012, Alexandra purchases a personal computer for her home. The computer cost $3,000. Alexandra uses the computer 80 percent of the time in her accounting business, 10 percent of the...
-
John Fuji (age 37) moved from California to Washington in December 2011. He lives at 468 Cameo Street, Yakima, WA 98901. John's Social Security number is 571-78-5974 and he is single. His earnings...
-
Scores for the California Peace Officer Standards and Training test are normally distributed, with a mean of 50 and a standard deviation of 10. An agency will only hire applicants with scores in the...
-
1. Find the z-score that corresponds to a cumulative area of 0.3632. 2. Find the z-score that has 10.75% of the distributions area to its right.
-
Find the z-score that corresponds to each percentile. 1. P 5 2. P 50 3. P 90
Study smarter with the SolutionInn App