The following information appeared in the accounting records of Ramehow Projects: Extract from the Statement of...

 

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The following information appeared in the accounting records of Ramehow Projects: Extract from the Statement of Comprehensive Income for the year ended 31 March 2022 Sales (all credit) Gross profit Operating profit Interest expense Profit before tax Net profit after tax Extract of the Statement of Financial Position as at 31 March 2022 Assets Non-current assets Current assets Inventory Debtors Bank Equity and Liabilities Owners' equity R 610 000 390 000 170 000 17 000 153 000 110 000 Non-current liabilities Current liabilities R 70 000 150 000 120 000 R 700 000 340 000 1 040 000 600 000 300 000 140 000 1 040 000 Required: Calculate and comment on the following ratios (where applicable round off answers to two decimal places): 1.1 Gross margin (4) Current ratio 1.3. Acid-test ratio 1.4 1.5 1.2 1.6 Debtors collection period Inventory turnover Return on assets (4) (4) (5) The following information appeared in the accounting records of Ramehow Projects: Extract from the Statement of Comprehensive Income for the year ended 31 March 2022 Sales (all credit) Gross profit Operating profit Interest expense Profit before tax Net profit after tax Extract of the Statement of Financial Position as at 31 March 2022 Assets Non-current assets Current assets Inventory Debtors Bank Equity and Liabilities Owners' equity R 610 000 390 000 170 000 17 000 153 000 110 000 Non-current liabilities Current liabilities R 70 000 150 000 120 000 R 700 000 340 000 1 040 000 600 000 300 000 140 000 1 040 000 Required: Calculate and comment on the following ratios (where applicable round off answers to two decimal places): 1.1 Gross margin (4) Current ratio 1.3. Acid-test ratio 1.4 1.5 1.2 1.6 Debtors collection period Inventory turnover Return on assets (4) (4) (5)

Answer rating: 100% (QA)

Calculate and comment on the following ratios for City Projects Ltd for the year ended 31 March 2021 as follow 11 Gross Margin Gross Margin Gross Prof... View the full answer