Question: please help as soon as possible Instructions: (a) Calculate the following ratios. (20 marks) 2015 2014 1. Current ratio 273000/71500 = 3.8:1 209000/56000 = 3.7:1



Instructions: (a) Calculate the following ratios. (20 marks) 2015 2014 1. Current ratio 273000/71500 = 3.8:1 209000/56000 = 3.7:1 70000/840000/365 = 30.42 days 95000/928000/365 = 37.36 days 2. Days Sales Outstanding 71000/ 465000* 365 = 48.67 days 81000/478000 * 365 = 58 days 3. Days in Inventory 4. Debt to total assets 674500/991000 = 0.68:1 499000/630000 = 0.79:1 5. Times interest 76000/ 107500 = 7.07:1 126000/28500 = 4.42:1 126000/131000 = 0.96:1 120000/316500 = 0.38:1 6. Cash total debt coverage 332000/465000*100= 71% 392000/478000*100 = 82% 7. Gross profit Margin 8. Profit margin 49000/797000*100 = 6.15% 76250/870000*100= 8.76% 797000/586000 = 1.36:1 870000/810500 = 1.07:1 9. Asset turnover 49000/586000 = 0.08:1 76250/810500 = 0.09:1 10. Return on assets (b) Compare the ratios between 2015 and 2014 and comment if the performance in 2015 was better' or 'worse'. (5 marks) Better or Worse Better Ratio Current ratio Receivables Turnover Inventory Turnover Debt to total assets Times Interest Earned Cash Total Debt Coverage Gross profit Margin Profit margin Asset turnover Return on assets
Step by Step Solution
There are 3 Steps involved in it
Get step-by-step solutions from verified subject matter experts
