Question: Set out below are ratios relating to three different businesses. Each business operates within a different industrial sector. Ratio A plc B plc C plc

Set out below are ratios relating to three different businesses. Each business operates within a different industrial sector. Ratio A plc B plc C plc Operating profit margin 3.6% 9.7% 6.8% Sales to capital employed 2.4 times 3.1 times 1.7 times Inventory turnover period 18 days N/A 44 days Average settlement period for trade receivables 2 days 12 days 26 days Current ratio 0.8 times 0.6 times 1.5 times Required: State, with reasons, which one of the three businesses is: (a) A holiday tour operator (b) A supermarket chain (c) A food manufacturer

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!

Introduction In 2010, New United Motor Manufacturing, Inc., a unique and highly successful joint venture between Americas General Motors and Japans Toyota, went out of business. NUMMI, as the...

Set out below are ratios relating to three different businesses. Each business operates within a different industrial sector. Ratio Operating profit margin Sales to capital employed Average...

Set out below are ratios relating to three different Firms. Each Firm operates within a different industrial sector Ratio A B C Net profit margin 3.6% 9.7% 6.8% Asset turnover ratio 2.4 times 3.1...

8.1 Set out below are ratios relating to three different businesses. Each business operates within a different industrial sector. Ratio A plc B plc C plc Operating profit margin 3.6% 9.7% 6.8% Sales...

Set out below are ratios relating to three different businesses. Each business operates within a different industrial sector. Required: State, with reasons, which one of the three businesses is: (a)...

Set out below are ratios relating to three different businesses. Each business operates within a different industrial sector. Required: State, with reasons, which of the above is: (a) A holiday tour...

Part 1: Finding information: Each of the following questions should be answered within the table provided in file entitled "PART 1 TABLE." American Eagle's 2009 10-K is in the file entitled...

Please I need help with the ratios mention bellow. Find necessary information the complete the assignment on the attachments, Which include PDF of the 10k. Thanks Calculate the following ratios for...

Alicia Tax Services paid $500 to settle an account payable. Which of the following general journal entries will Alicia Tax Services make to record this transaction? . Debit Accounts payable, $500;...

A manufacturer of small residential dehumidifiers has been receiving numerous customer complaints concerning quality problems and backorders. Apparently, the demand for dehumidifiers, which is...

8. Draw the AOQ curve for the plan given in Problem 7. What is the average outgoing quality limit (AOQL)?

Which of the following are problems with identifying users of ABC? Multiple select question. ABC means different things to different organizations. Organizations will announce the discontinuance of...

(Appendices) Many employers have both group short-term and long-term disability-income plans. Compare (1) short-term plans with (2) long-term plans with respect to each of the following: LO8 a....

(Appendices) The Unemployment Insurance Modernization Act was included in the fiscal stimulus package of early 2009. The act was designed to modernize and make corrections to serious defects found in...

(Appendices) Although eligibility requirements for unemployment compensation vary among the states, there are a number of common eligibility requirements. Assume that a worker meets the qualifying...