The summarised accounts of Hope (Eternal Springs) Ltd for the years 2022 and 2023 are given below.

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(a) Calculate the following ratios for 2022 and 2023:
(i) Gross profit: Sales (ii) Inventory turnover (iii) Net profit: Sales (iv) Quick ('acid test')
(v) Working capital (vi) Net profit: Capital employed

(b) State the possible reasons for and significance of any changes in the ratios shown by your calculations.

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Frank Woods Business Accounting An Introduction To Financial Accounting

ISBN: 9781292365435

15th Edition

Authors: Alan Sangster, Lewis Gordon, Frank Wood

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Question Posted: Mar 04, 2024 09:23 AM

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The summarised accounts of Hope (Eternal Springs) Ltd for the years 2022 and 2023 are given below.

Question:

Sales Less Cost of sales Gross profit Less Income Statements for the years ending 31 December 2022 Administration expenses Loan note interest Net profit 000 38 | 000 200 (150) 50 (38) 12 000 46 4 2023 000 280 (210) 70 (50) 20

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b Brief answer but you should write more in an exam i No change ii I...View the full answer

Frank Woods Business Accounting An Introduction To Financial Accounting

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