12.4* The following information has been extracted from the books of account of Betty for the year to 31 January 2008:

Required:
Calculate the following accounting ratios:
1 gross profit;
2 net profit;
3 return on capital employed;
4 current ratio;
5 acid test;
6 stock turnover; and 7 debtor collection period.

Transcribed Image Text:

Trading and profit and loss account for the year to 31 January 2008 Sales (all credit) Less: Cost of goods sold: Opening stock Purchases Less: Closing stock Gross profit Administrative expenses Net profit 000 000 100 15 65 80 10 70 30 16 14 Balance sheet at 31 January 2008 Fixed assets (net book value) Current assets Stock Trade debtors Cash Less: Current liabilities 25 Trade creditors 000 000 29 22336 10 12 48 16|| 19 Financed by: Capital at 1 February 2007 Add: Net profit Less: Drawings 40 40 14 16 = ||0|00 8