Question: Please help me i will give good rating i) Current ratio (example) ii) Return on assets iii) Return on capital employed iv) Inventory turnover Show

Please help me i will give good rating

Please help me i will give good rating i) Current ratio (example)

i) Current ratio (example)

ii) Return on assets

iii) Return on capital employed

iv) Inventory turnover

Show the answer of the above transactions based on the accounting equation in the form of Tabular table as shown below.

Ratio

Purpose

Formula

2022

2021

Satisfactory

level

Explanation

Current Ratio

To show short term debt paying ability

Current Assets

Current Liabilities

64899 /

17,201

= 3.77

44,996 /

31,173

= 1.44

1.5 is considered as the norm and acceptable.

In 2022, For every RM1 of the current liabilities, there is RM3.77 of current assets to cover it. In 2022 the firm is able to cover short term debts.

Lew Berhad Comparative Statements of Financial Position as at 31 December 2022 and 2021 Lew Berhad Comparative Statements of Financial Position as at 31 December 2022 and 2021

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