Question
Instruction: Answer all questions in Microsoft Words and submit the answers Tutorial - Financial Ratios Analysis 1. The formula for Statement of Financial Position or
7. X Co. Has made plans for the next year. It is estimated that the company will employ total assets of RM800,000; 50 percent of the assets being financed by borrowed capital at an interest cost of 8 percent per year. The direct costs for the year are estimated at RM480,000 and all other operating expenses are estimated at RM80,000. The goods will be sold to customers at 150 percent of the direct costs. Tax rate is assumed to be 50 percent. You are required to calculate:
(i) Net Profit Margin (ii) Return on Assets (iii) Asset Turnover
(iv) Return on Owners' Equity
- Shine Limited has a current ratio 4.5: 1 and quick ratio 3: 1; if the inventory is RM36,000, calculate Current Liabilities and Current Assets.
- Why would the inventory turnover ratio be more important when analysing a grocery store than an insurance company?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started