CONFIDENTIAL 5/6 000 117 000 450 70 Bank Question 4 The following financial statements relate to Sorby Ltd: Statement of comprehensive Income for the year ended 30 September 2019 Sales 800 Less: Cost of sales 300 Gross profit 500 Less: expenses (including debenture interest) 383 Net profit Financial Position at 30 September 2019 E000 Non current Assets Current Assets: Inventory Accounts receivable 200 180 450 Current Liabilities Accounts payable 12001 Net Current Assets 250 Capital and Reserves: 350,000 Ordinary shares of 1 each 350 Retained profits 200 Non Current liabilities 6% debentures 150 700 Additional information: Stock at 1 October 2018 was 80,000 REQUIRED (a) Calculate the following ratios for Sorby Ltd for the year ended 30 September 2019. All calculations should be to one decimal place. Show the formula for each ratio. 700 (1) Gross profit as a % of sales (margin) (it) Rate of stock-turnover (number of times per year) CH) Current/working capital ratio (i) Liquidity/acid test ratio (W) Return on total capital employed. Use net profit before interest (5 marks) (5 marks) (5 marks) (5 marks) (5 marks) (Total 25 marks) ACC 1023 DIBA) FEB, 2021