The following information has been extracted from the books of account of Betty for the year to 31 January 2017: 

Required:

Calculate the following accounting ratios:

(a) Gross profit ratio

(b) Return on capital employed

(c) Current ratio

Transcribed Image Text:

Statement of profit or loss for the year to 31 January 2017 £000 £000 100 Sales (all credit) Less: Cost of goods sold: Opening inventory Purchases Less: Closing inventory Gross profit Administrative expenses Net profit 15 65 80 (10) (70) 30 (6) 8 (16) 14 Statement of retained earnings for the year to 31 January 2017 Opening retained earnings 0 14 Net profit for the year Less: drawings Closing retained earnings