Question
Extracts from a company's accounts show the following balances: $000 $000 Inventories 150 Revenue 2,700 Receivables 300 Cost of sales 1,300 Cash 25 Gross profit
Extracts from a company's accounts show the following balances:
$000 $000
Inventories 150 Revenue 2,700
Receivables 300 Cost of sales 1,300
Cash 25 Gross profit 1,400
Payables 230 Admin costs 500
Overdraft 90 Distribution costs 350
Operating profit 550
Finance cost 75
Required
1) What is the company's current ratio (to the nearest 2 decimal places)?
2) What is the company's quick ratio (to the nearest two decimal places)?
3) What is receivable's payment period in days (to the nearest day)?
4) What is the payable's payment period in days (to the nearest day)?
5) What is the inventory holding period(to the nearest day)?
6) What is the return on sales for the company?
7) What is the interest cover of the company?
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