Your advice is sought by a bank which is considering a request for substantial overdraft facility from

Question:

Your advice is sought by a bank which is considering a request for substantial overdraft facility from Fairways, a supermarket with sales outlets spread throughout the UK. The operating profit of Fairways for the year ended 30 June 2010 was £4,428,500, after writing off £84,500 as depreciation. Shown are items reported on Fairways’ Statement of financial position as at 30 June 2010. Which of the accounting ratios stated on the right will you draw the bank’s attention to when considering the overdraft requested?

Fantastic news! We've Found the answer you've been seeking!

Step by Step Answer:

Related Book For  book-img-for-question

Financial Accounting An Introduction

ISBN: 9780273737650

2nd Edition

Authors: Mr Barry Elliott, Mr Augustine Benedict

Question Posted: