You have been recently appointed as the new intern at H G V Consulting. Your manager...

 

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You have been recently appointed as the new intern at H G V Consulting. Your manager has provided you with the following extract from a client's records to assist in interpreting the datal Sales Cost of sales Gross profit Salaries Total Income Net Income Total Capital Employed Current liabilities Current assets Inventory Total liabilities Total Assets R 1 200 000 800 000 ? 290 000 1 450 000 230 000 iv. the profitability 2 500 000 55 250 44 200 34 000 1 650 000 1812 500 Required: (a) You are required to calculate and comment on the following ratios: i. the solvency ratio the current ratio the salary to income ratio (b) Calculate the gross profit of the client and the percentage mark up on cost of goods sold. Ignore VAT. (4) (4) (4) (4) (4) [20] You have been recently appointed as the new intern at H G V Consulting. Your manager has provided you with the following extract from a client's records to assist in interpreting the datal Sales Cost of sales Gross profit Salaries Total Income Net Income Total Capital Employed Current liabilities Current assets Inventory Total liabilities Total Assets R 1 200 000 800 000 ? 290 000 1 450 000 230 000 iv. the profitability 2 500 000 55 250 44 200 34 000 1 650 000 1812 500 Required: (a) You are required to calculate and comment on the following ratios: i. the solvency ratio the current ratio the salary to income ratio (b) Calculate the gross profit of the client and the percentage mark up on cost of goods sold. Ignore VAT. (4) (4) (4) (4) (4) [20]

Answer rating: 100% (QA)

a Calculation and interpretation of ratios i Solvency ratio Solvency ratio Total Assets Total Liabilities Total Assets Total Capital Employed Current ... View the full answer