Refer to your answer to Exercise 9.2 above. Calculate ratios that you believe could be used to interpret the VAS for Buttons Ltd. Explain the purpose of each ratio.

Exercise 9.2

The following information has been taken from the accounts of Buttons Ltd, a retail business, for the year ended 30 September.

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3 Revenue 950,000 Cost of sales: Materials (220,000) Wages and salaries (160,000) Other expenses (95,000) Interest (45,000) Depreciation (80,000) (600,000) 350,000 Taxation Dividends paid Retained profit (110,000) 240,000 (120,000) 120,000