You are the financial director of Farm Poultry Enterprises. The following information is prepared by your head
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Question:
You are the financial director of Farm Poultry Enterprises. The following information is prepared by your head accountant and presented to you for the current year (2022) and the comparative year (2021):
2022 2021
Return on Shareholder’s Equity (ROE) 11% 15%
Net Profit before tax (Rm) R2.25 R3
Current ratio 1.4:1 1.6:1
Acid-test ratio 0.4:1 0.9:1
Debtor’s collection period 58 days 67 days
Creditor’s payment period 30 days 30 days
Inventory turnover rate 6 times 4 times
Required:
After an analysis and interpretation of the above information prepare a detailed report that you would present to your Board of Directors.
Related Book For
Financial Accounting and Reporting
ISBN: 978-0273744443
14th Edition
Authors: Barry Elliott, Jamie Elliott
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