Taking data of Examples 7 and 8, calculate the following activity ratios: 1. Inventory turnover ratio 2.

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Taking data of Examples 7 and 8, calculate the following activity ratios:
1. Inventory turnover ratio
2. Average inventory holding period
3. Average debt collection period
4. Average payables period
5. Fixed assets turnover ratio

Data from Example 7

The following is the profit and loss account and balance sheet of Sach International Ltd. Redraft these for the purpose of ratio analysis and calculate profitability ratios based on sales.

Particulars To Opening Stock Finished Goods Raw Material To Purchase of Raw Material To Direct Wages To

Data from Example 8

By using the income statement of Example 7 and the following balance sheet, calculate investment-based profitability ratios.

Particulars Equity Share Capital (face value 10) 10% Preference Share Capital General Reserve Securities

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Financial Accounting

ISBN: 9780071078023

1st Edition

Authors: Dhanesh K. Khatri

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