Mosca and Vespa are two sole traders with the financial statements (in euros) for the year ending 31 December as set out in Figure 7.10.

Using the information contained in the financial statements, and assuming opening and closing inventories are the same, calculate the following ratios and comment on the results of your analysis:

(i) return on capital employed;

(ii) gross profit margin;

(iii) current ratio;

(iv) inventory turnover period;

(v) debtors collection period;

(vi) creditors payment period.

Answer rating: 100% (QA)

i The return on capital employed for Mosca is 164 while the return on capital employed for Vespa is ... View the full answer