Stepfall Ltd had the following ratios at 31 December 2017 and 31 December 2016 2017 2016 Gross profit margin 27 31 Return on capital employed 15 22 Current ratio 1 1 1 0 7 1 Acid test ratio 0 8 1 0 6 1 Trade receivable days 33 days 48 days Inventory holding days 42 days 57 days Which ONE of the following statements is TRUE a) The companys profitability, working capital management and liquidity have improved b) The companys profitability and working capital management have deteriorated but liquidity has improved c) The companys profitability, working capital management and liquidity have deteriorated d) The companys profitability has deteriorated, but working capital management and liquidity have improved

The Answer is in the image, click to view ...

Question: Stepfall Ltd had the following ratios at 31 December 2017 and 31 December 2016: 2017 2016 Gross profit margin 27% 31% Return on capital employed

Stepfall Ltd had the following ratios at 31 December 2017 and 31 December 2016: 2017 2016 Gross profit margin 27% 31% Return on capital employed 15% 22% Current ratio 1.1:1 0.7:1 Acid test ratio 0.8:1 0.6:1 Trade receivable days 33 days 48 days Inventory holding days 42 days 57 days Which ONE of the following statements is TRUE?

a)	The companys profitability, working capital management and liquidity have improved.

b) The companys profitability and working capital management have deteriorated but liquidity has improved

c)	The companys profitability, working capital management and liquidity have deteriorated.

d) The companys profitability has deteriorated, but working capital management and liquidity have improved.

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!

Data on the physical inventory of Ashwood Products Company as of December 31 follow: Inventory Item Inventory Quantity Market Value per Unit (Net Realizable Value) B12 38 $ 57 E41 18 180 G19 33 126...

a. Calculate the following ratios: i. Profitability ratios - Return on Capital Employed, Return on Equity, Gross profit margin and Net profit margin ii. Long term solvency and stability - Debt/Asset...

I am facing some difficulties,could anyone help out ? ii Required: a Calculate the following ratios: i. Profitability ratios - Return on Capital Employed, Return on Equity, Gross profit margin and...

Please answer all. Thank you. The following 2 pictures are the Consolidated Balance Sheet The following 2 pictures are the Consolidated Statement of Cash Flows. From the financial statement of...

Detailed workings and explanations required in this assignment. Much Thanks! Would appreciate if full workings could be compiled. FIN303 Financial Management Assignment 1 - Individual...

Balance Sheet December 31 2016 () 2017 () 2.000 2,000 2,000 20.000 4,000 30,000 4,500 6,500 5,000 35,000 5.000 56,000 Assets Cash Accounts receivable (net) Inventory Property, plant, and equipment...

-20 QUESTION 3 REQUIRED 3.1 Use the information provided below to calculate the following ratios. Where applicable, round off answers to two decimal places. 3.1.1 Gross profit margin 3.1.2 Operating...

Please help me with question 3 CE LO 7 8 MANCOSA: POSTGRADUATE DIPLOMA IN PROJECT MANAGEMENT + X 5 QUESTIONS (20) REQUIRED 3.1 Use the information provided below to calculate the following ratios....

Financial Statement Analysis Group Project ACCT3303 *** Warning: The financial ratios presented in the sample projects are different from what required in the current projects. Therefore, you CANNOT...

Hello tutor Please find the attached instruction file and use the template for solving this question. If you have any question about the problem please contact me. Thanks Your Course Project...

Prepare vertical common-size income statements and balance sheets for both companies Prepare horizontal analysis on income statements and balance sheets for both companies Ratio analyses Comment on...

Steinborn Homes manufactures prefabricated chalets in Colorado. The company uses a perpetual inventory system and a job cost system in which each chalet is a job. The following events occurred during...

Q3. Consider the partially-completed Car class below (available on Moodle). Complete the program as follows: #include using namespace std; class Car f public: Car () ( 1 // Your code for part (a)...

D O NOT EVALUET THE INTEGRAL. STATE I F I T CONVERGES O R DIVERGES. SHOW WORK FOR CREDIT 3 1 x 2 - 1 d x

Consider the basic Solow model summarized by the following equations: Y; = ZKL-, 1-a K = sY; dK, Ko > 0 given, L = Loent. The law of motion for the capital-labor ratio, k = Kt/Lt, is ki = sZk (n+...

What I got so far with 1 through 4: a. To create a object for LightSequence with intial sequence "0101 0101 0101". LightSequence gradshow = new LightSequence ("0101 0101 0101"); b. Statement to call...

Tom Jackson was an employee of a large farm machinery manufacturing plant located in Akron, Ohio. He had been recently promoted and was considered by his peers to be a very good employee. Toms new...

Mad Max wants to travel from New York to Dallas by the shortest possible route. He may travel over the routes shown in Table 8. Unfortunately, the Wicked Witch can block one road leading out of...

F Ltd. deducted the following reserves on its income statement for the current year: $20,000 reserve for doubtful accounts, $30,000 reserve for warranty claims, and $150,000 reserve for amounts due...

Cu l de estas Gesti n empresarial o Gesti n operativa? Es la que se preocupa por las actividades y decisiones del d a a d a de una empresa. Answer Gesti n empresarial Gesti n operativa

=+2. What key things should you note when applying for a social media position?

=+5. Identify the differences between a social media community manager, a social media strategist, and a social media manager.

=+2. You have been asked to apply for a position at BuzzFeed. The hiring managers are looking for not only a cover letter, but a few pieces of content you have produced on social media. Create a post...