Question: QUESTION 2 (20 marks) CLO 5 a. Explain what the following ratios indicate to a firm: (i) Acid Test Ratio (ii) Return on Capital

QUESTION 2 (20 marks) CLO 5 a. Explain what the following ratios indicate to a firm: (i) Acid Test Ratio (ii) Return on Capital Employed (ROCE) (iii) Debtors Collection Period (iv) Working Capital (2 marks) (2 marks) (2 marks) (2 marks) b. The following is the condensed Balance Sheet of Minto Enterprises Ltd. for the year ended 30 September 2022. Details Fixed Assets Stock Debtors Bank $'000 $'000 $'000 30 300 5 680 10 940 4 48,0 21 100 51 400 Capital Net Profit 35 000 6 330 41 330 Drawings 3 730 37 600 (6 months) 9 300

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Sure heres an explanation of each of these financial ratios and what they indicate to a firm i Acid Test Ratio The Acid Test Ratio also known as the Q... View full answer

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