From the following financial statement, calculate (i) Current ratio (ii) Acid test ratio (iii) Inventory turnover (iv)

Question:

From the following financial statement, calculate

(i) Current ratio

(ii) Acid test ratio

(iii) Inventory turnover

(iv) Average debt collection period

(v) Average creditors’ payment period

1500 Sales Cost of sales 1000 Gross profit 500 Current Assets Inventories Debtors Cash Current Liabilities

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Financial Accounting

ISBN: 9780071078023

1st Edition

Authors: Dhanesh K. Khatri

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Question Posted: Dec 16, 2023 11:53 PM

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From the following financial statement, calculate (i) Current ratio (ii) Acid test ratio (iii) Inventory turnover (iv)

Question:

1500 Sales Cost of sales 1000 Gross profit 500 Current Assets Inventories Debtors Cash Current Liabilities Trade Creditors 125 250 225 200

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To calculate the financial ratios requested well use the given values from the financial statement T...View the full answer

Financial Accounting

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