Question: QUESTION 1: RATIO ANALYSIS (17 marks) Use the ratios that were calculated for a retailer, Super Tech Company, and the Industry in which it

QUESTION 1: RATIO ANALYSIS (17 marks) Use the ratios that were calculated

QUESTION 1: RATIO ANALYSIS (17 marks) Use the ratios that were calculated for a retailer, Super Tech Company, and the Industry in which it operates. 1. Analyse these results in depth and highlight the possible strengths and/or weaknesses of Super Tech Company in comparison to the overall industry. (9 marks) 2. Explain the possible reasons for the deviations and what action should (if any) be taken to remedy the situation, in a short report to the CEO of Super Tech Company. (8 marks) Ratio 1. Gross Profit Margin 2. Net Profit Margin 3. ROI 4. Mark-up margin 5. Net working capital 6. Quick Ratio 7. Inventory turnover 8. ACP (credit terms are 30 days) 9. 10. Debt Ratio 11. 12. EPS 13. PER APP (payment terms are 60 days) Debt/Equity Ratio Super Tech Company 48% Industry average 35% 8% 10% 15% 13% 75% 75% N$350,000 1.3 times 5 times p/a N$200,000 0.7 times 3 times p/a 34 days 30 days 75 days 61 days 38% 28% 33% 25% 30c 45c 8 times 6 times

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!

Determine the force in members GF, FB, and BC of the Fink truss and state if the members are in tension or compression. 600 lb 800 lb 800 lb E 60 30 60 30 D -10 ft -10 ft- -10 ft-

.com/ilm/takeAssignment/takeAssignmentMain.do?invoker &takeAssignmentSessionLocator. During the current year, merchandise is sold for $53,780 cash and for $83,070 on account. The cost of the...

QUESTION 1: RATIO ANALYSIS (17 marks) Use the ratios that were calculated for a retailer, Super Tech Company, and the Industry in which it operates. 1. Analyse these results in depth and highlight...

3 of 6 QUESTION 1: RATIO ANALYSIS (30 marks) Use the ratios that were calculated for a retailer, DEL Company, and the industry in which it operates 1. Provide a brief introduction on ratio analysis...

QUESTION 1: RATIO ANALYSIS (30 marks) Use the ratios that were calculated for a retailer, DEL Company, and the Industry in which it operates. 1. Provide a brief introduction on ratio analysis and its...

Use the ratios that were calculated for a retailer, Super Tech Company, and the Industry in which it operates. 1. Analyse these results in depth and highlight the possible strengths and/or weaknesses...

Required information Use the following financial statements for questions 1 through 5: Manutech Ltd Income Statement Year Ended December 31 2019 Net sales $ 1,470,000 Variable Costs 882,000...

Use the ratios that were calculated for a retailer, OMAKE Company, and the Industry in which it operates. 1 . Provide a brief introduction on ratio analysis and its importance. ( 1 0 marks ) 2 ....

Use the ratios that were calculated for a retailer, OMAKE Company, and the Industry in which it operates. Provide a brief introduction on ratio analysis and its importance. ( 1 0 marks ) Analyse...

Dear Tutor, I need some help with my Accounting assignment. Let you know that company A is Michael Hill (MHJ), and company B is Blackmores (BKL) I have already attached three documents: 1) ACCT7101...

A massive gas sand at 10,000 ft having a porosity of 0.30 and a water saturation of 0.35 is being drilled at a rate of 80 ft/hr using a 9.875-in. bit. The drilling mud has a density of 12 lbm/gal and...

The selling expenses of Caribou Inc. for 2011 are 13% of sales. General expenses, excluding doubtful accounts, are 25% of cost of goods sold but only 15% of sales. Doubtful accounts are 2% of sales....

8 Life insurance may not be used as an asset class for a corporation set up as an owner of life insurance. True False

Distinguish between resource cost drivers and activity cost drivers.

Calculate the maximum velocity of slider B if the system is released from rest with x = y. Motion is in the vertical plane. Assume that friction is negligible. The sliders have equal masses, and the...

Kat is willing to pay $900 for 25 bottles of grape wine. The market price of 15 bottles of grape wine is $390. Because of an increase in the price of grapes, the price of grape wine increases to $450...

Select a workplace at your university such as an academic department office, the athletic department, the bookstore, or the cafeteria, and describe the compensation program for rank-and-file...

If the Consumer Price Index rose from 111.5 to 125.8 over an 8 1/2 year period, what was the equivalent compound annual inflation rate during the period?

Tori and some other childeen experimented with balls to see which ones rolled. First using a piece of cardboard to use as a ramp, they angled it on a block to the floor to test the balls. Then Tori...

57. Cliffs basis in his Aero Partnership interest is $11,000. Cliff receives a distribution of $22,000 cash from Aero in complete liquidation of his interest. Aero is an equal partnership with the...

15. Apple Union (AU), a C corporation with a March 31 year-end, uses the accrual method of accounting. If AU elects to be taxed as an S corporation, what will its year-end and method of accounting be...

59. Helens basis in Haywood Partnership is $270,000. Haywood distributes all the land to Helen in complete liquidation of her partnership interest. The partnership reports the following balance sheet...