Question
For the year ending 31-03-2021, JKL Enterprises has provided the following financial information: $ Cash 2,50,000 Sundry debtors 6,50,000 Short term investment 3,50,000 Stock 19,00,000
For the year ending 31-03-2021, JKL Enterprises has provided the following financial information:
$ | |
Cash | 2,50,000 |
Sundry debtors | 6,50,000 |
Short term investment | 3,50,000 |
Stock | 19,00,000 |
Prepaid expenses | 25,000 |
Total current assets: $31,75,000
$ | |
Current liabilities | 11,00,000 |
9% Debentures | 13,00,000 |
Equity share capital | 23,00,000 |
Retained earnings | 7,00,000 |
Statement of Profit for the year ending 31-03-2021
$ | |
Sales (50% cash sales) | 65,00,000 |
Less: Cost of goods sold | 43,00,000 |
Profit before interest & tax | 22,00,000 |
Less: Interest | 2,75,000 |
Profit before tax | 19,25,000 |
Less: Tax @28% | 5,39,000 |
Net Profit: $13,86,000
Calculate: (i) Current liabilities to net worth, (ii) Fixed assets turnover ratio, (iii) Gross profit ratio, and (iv) Payables turnover ratio.
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