14.21 A Wiswell Limited is a trading company. Its year-end accounts for 20X4 and 20X3 include the following relevant details:

20X4

£

20X4

£

1 936 000 20X3

£

20X3

£

1 877 200 Sales Cost of sales Opening stock Add: purchases 145550 1 042 255 1 187 805 (160 370)

136 200 1 025 666 1 161 866 (145 550)

Less: closing stock

(1 027 435)

(1 016316)

20X4 20X4 20X3 20X3 £
£ £
£
Gross profit 908 565 860 884 Stocks 160370 145 550 Debtors 226485 209 063 Creditors 160479 151 742 Calculate the following ratios for both 20X4 and 20X3:
i) Stock turnover in days ii) debtors turnover in days iii) creditors turnover in days.
Connment briefly on the significance of the changes in the ratios.
The following information about Waldo Wolff pic, a quoted company, is relevant to questions 14.22-14.25 inclusive. Extracts from Waldo Wolff's accounts for the year ending 31 December 20X4 include the following useful information:
£000 Operating profit 1 836.4 Interest payable (220.0)
Profit before taxation 1616.4 Taxation (485.0)
Profit after taxation 1 131.4 Dividends (300.0)
Retained profit 831.4 The company has 6 000 000 shares in issue. The shares have a nominal value of 50p each. The market price at 31 December 20X4 of a share in the company is £3.11.