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ADM Ply Ltd has Total Assets of R850 000. Debt ratio for the firm is 80% of which 70% is long term liabilities. The Asset

ADM Ply Ltd has Total Assets of R850 000. Debt ratio for the firm is 80% of which 70% is long term liabilities. The Asset turnover is 6, net profit margin is 12%, the interest rate is 8% and tax rate is 40% for the firm.

Calculate the following for the firm:

  1. Sales for the company is R
  2. Net profit after tax is r
  3. Taxes are R
  4. Interest expense for the firm is R
  5. Eamings before interest and tax is R
  6. The coverage ratio for the firm is
  7. Retur on assets is
  8. Return on equity is

and Earnings before tax is therefore R

%

9. The current liabilities figure for the firm is R

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