Question
Extracts from a company's accounts show he following: $000 $000 Non-current assets 30,000 Current assets Inventory 22,000 Trade receivables 12,506 Cash 5,006 39,512 Total assets
Extracts from a company's accounts show he following:
$000 $000
Non-current assets 30,000
Current assets
Inventory 22,000
Trade receivables 12,506
Cash 5,006
39,512
Total assets 69,512
Equity
Share capital 100
Revaluation reserve 12,000
Retained earnings 26,412
Non-current liabilities
Loans 16,000
Current liabilities
Trade payables 15,000
Total equity and liabilities 69,512
Required
1) What is the gearing ratio (total debt/equity)of the company?
2) What is the company's current ratio (to the nearest two decimal places)
3) What is the company's quick ratio (to the nearest two decimal places)?
4) What is the ROCE of the company (return on capital employed)?
5) What are the receivable days to the company(to the nearest whole day?
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Comprehensive Assurance & Systems Tool
Authors: Laura IngrahamJ Jenkins
2nd Edition
0131377213, 9780131377219
