Calculate the profitability of the following proposal using Return on investment method

	Proposal I
	Automatic machine
Cost	320000
Estimated life	6.5 years
Estimated sales p.a	160000
Cost : Material	60000
Labor	22000
Variable overheads	14000

a.3.42%

b.16.53%

c. All the options are wrong

d.4.62%

2)

Ameen traders. is a recently started stationery business in Muscat. The management of the company is planning to improve their operational efficiency based on their previous year experience. The finance manager of Ameen traders is seeking your help in assessing the stock turnover ratio and debtor’s turnover ratio from the given financial data;

Stock on 1-1-2020 was OMR 10,000, during the year 2020 the company made a total purchase of OMR 20,000 out of which OMR 3000 was on cash basis. Total sales of the company during the year 2020 is 40,000 of which 20,000 was on cash basis. Stock on 31-12-2020 is given as 6,000. The following are the other information extracted from the last year financial statements.

Choose the correct Stock turn over ration and Debtors turnover ratio from the following?

a)Stock turnover ratio is 1.68 and Debtors turnover ratio is 2.57

B)Stock turnover ratio is 1.57 and Debtors turnover ratio is 2.57

c)Stock turnover ratio is 2.625 and Debtors turnover ratio is 1.44

d)Stock turnover ratio is 2.85 and Debtors turnover ratio is 1.68

3)What is the FV of a RO 800, 8-year loan with 2% monthly compound interest?

a.192.55

b. All options are wrong

c.119.52

d.3328.91

e.5354.34

Answer rating: 100% (QA)

1 For answering question 1 we need to calculate the Net profit amount Net profit 160000 Sales Materi... View the full answer