Question
Given below the Income Statement for the year ended 30 December 2020: Sales revenue RM 900,500 Cost of goods sold (370,000) Gross profit 530,500 Operating
- Given below the Income Statement for the year ended 30 December 2020:
| Sales revenue | RM 900,500 |
| Cost of goods sold | (370,000) |
| Gross profit | 530,500 |
| Operating expenses | (498,000) |
| Net profit | 32,500 |
Average inventories was RM215,000.
- Compute the followings:
- Gross profit margin
- Inventory turnover ratio
- Net profit margin
(12 marks)
- Based on the ratio computed above, what is your opinion towards the company financial position?
(1 marks)
Acid test ratio 1.08 indicates that company has rm1.08 of liquid asset available to cover each rm1.00 of its current liabilities
- Given below the Income Statement for the year ended 30 December 2020:
| Sales revenue | RM 900,500 |
| Cost of goods sold | (370,000) |
| Gross profit | 530,500 |
| Operating expenses | (498,000) |
| Net profit | 32,500 |
Average inventories was RM215,000.
- Compute the followings:
- Gross profit margin
- Inventory turnover ratio
- Net profit margin
(12 marks)
- Based on the ratio computed above, what is your opinion towards the company financial position?
(1 marks)
Acid test ratio 1.08 indicates that company has rm1.08 of liquid asset available to cover each rm1.00 of its current liabilities
- Given below the Income Statement for the year ended 30 December 2020:
| Sales revenue | RM 900,500 |
| Cost of goods sold | (370,000) |
| Gross profit | 530,500 |
| Operating expenses | (498,000) |
| Net profit | 32,500 |
Average inventories was RM215,000.
- Compute the followings:
- Gross profit margin
- Inventory turnover ratio
- Net profit margin
(12 marks)
- Based on the ratio computed above, what is your opinion towards the company financial position?
(1 marks)
Acid test ratio 1.08 indicates that company has rm1.08 of liquid asset available to cover each rm1.00 of its current liabilities
- Given below the Income Statement for the year ended 30 December 2020:
| Sales revenue | RM 900,500 |
| Cost of goods sold | (370,000) |
| Gross profit | 530,500 |
| Operating expenses | (498,000) |
| Net profit | 32,500 |
Average inventories was RM215,000.
- Compute the followings:
- Gross profit margin
- Inventory turnover ratio
- Net profit margin
(12 marks)
- Based on the ratio computed above, what is your opinion towards the company financial position?
(1 marks)
Acid test ratio 1.08 indicates that company has rm1.08 of liquid asset available to cover each rm1.00 of its current liabilities
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Managing Cash Flow An Operational Focus
Authors: Rob Reider, Peter B. Heyler
1st Edition
0471228095, 9780471228097
