Question 9

What is the Quick Asset Ratio (expressed as a formula) for the following figures?

Current assets: $2,000,000

Stock: $55,000

Current liabilities: $1,300,000

Bank overdraft: $45,000

Question 10

What is the Proprietary Ratio (expressed as a percentage)given the following?

Total proprietorship: $375,000

Total assets: $1,500,000

Question 11

Calculate the gross profit margin percentage for the figures below:

Sales: $ 2,457,983

Gross profit: $890,816

Question 12

Calculate room occupancy percentage from the following:

Total rooms available: 1205

Rooms occupied: 378

Question 13

What is the average room rate for the following?

Room revenue: $66,450

Total rooms available: 524

Question 14

The following ratios are used to judge the financial stability of a business: identify if the following are used to determine the short- or long-term financial stability of a business.

Name of ratio

Short-term or Long-term

Quick asset ratio

Proprietary ratio

Working capital ratio

Interest coverage

Question 15

If your working capital ratio went from 2 to 1, would that generally be seen as a positive or negative movement?

Question 16

Your gearing ratio has moved from 0.5 to 1.0: is that generally regarded as a Positive or Negative movement?