A The following information has been extracted from the accounts of Witton Way Ltd: Additional information During

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A The following information has been extracted from the accounts of Witton Way Ltd:image text in transcribed

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Additional information During the year to 30 April \(19 \mathrm{X}\), the company tried to stimulate sales by reducing the selling price of its products and by offering more generous credit terms to its customers.
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(a) Calculate six accounting ratios specifying the basis of your calculations for each of the two years to 30 April 19X5 and 19X6 respectively which will enable you to examine the company's progress during \(19 \times 6\).

(b) From the information available to you, including the ratios calculated in part

(a) of the question, comment upon the company's results for the year to 30 April 19X6 under the heads of 'profitability', 'liquidity', 'efficiency' and 'shareholders' interests'.

(c) State what additional information you would require in order to assess the company's attempts to stimulate sales during the year to 30 April 19X6.

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ISE Business Accounting

ISBN: 9780273638407

8th Edition

Authors: Frank Wood, Alan Sangster

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