Answered step by step
Verified Expert Solution
Question
00
1 Approved Answer
(1) Selected data for two similar shops in the some industry are as follows. Cash Debtors Stocks Equipment (net) Current liabilities Long-term liabilities Capital and
(1) Selected data for two similar shops in the some industry are as follows. Cash Debtors Stocks Equipment (net) Current liabilities Long-term liabilities Capital and retained earnings Annual sales Cost of goods sold Salary Other expenses Z-One 80,000 137,000 400,000 380,000 250,000 400,000 550,000 1,200,000 500,000 150,000 250000 J-2008 200,000 212,000 400,000 520,000 350,000 500,000 600,000 1,400,000 800,000 200,000 175,000 REQUIRED: a) Calculate each shop's net profit ratio, gross profit ratio, current ratio, quick ratio, return on assets, debtors ratio, stock turnover ratio, and gearing ratio? b) Which of the two shops would you consider as being in a better financial position and why? (1) Selected data for two similar shops in the some industry are as follows. REQUIRED: a) Calculate each shop's net profit ratio, gross profit ratio, current ratio, quick ratio, return on assets, debtors ratio, stock turnover ratio, and gearing ratio? b) Which of the two shops would you consider as being in a better financial position and why
(1) Selected data for two similar shops in the some industry are as follows. Cash Debtors Stocks Equipment (net) Current liabilities Long-term liabilities Capital and retained earnings Annual sales Cost of goods sold Salary Other expenses Z-One 80,000 137,000 400,000 380,000 250,000 400,000 550,000 1,200,000 500,000 150,000 250000 J-2008 200,000 212,000 400,000 520,000 350,000 500,000 600,000 1,400,000 800,000 200,000 175,000 REQUIRED: a) Calculate each shop's net profit ratio, gross profit ratio, current ratio, quick ratio, return on assets, debtors ratio, stock turnover ratio, and gearing ratio? b) Which of the two shops would you consider as being in a better financial position and why?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access with AI-Powered Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started