OM/Desktop/lizzay%20assignments/ACC%20622620ASSIGN=6202022.pdf Mortgage loan: Nesko Mortgage 56 892.50 Current liabilities 35 886.04 Trade creditors 20 131.19 Amdex credit card 15 754.84 Total equity and liabilities 1 431 940.35 Comparative figures: Ratio Industry averages Ratio for the years ended 30 November 2015 2014 The return on average owner's equity 58.00% 51.00% Return on average owner's equity Current ratio Average trade debtors collection period for the industry is 60 % The current ratio for the industry is 2:1 The average trade debtors collection period for the industry is 24 days I 3:1 1.5:1 8 9 REQUIRED: Calculate the following ratios for the year ended 30 November 2016 and comment on the business's profitability and liquidity. Refer in particular to the past figures shown above. Note that one point will be allocated for every formula quoted. 1.1 Return on average owner's equity 1.2 Current ratio 1.3 Average trade debtor's collection period (10) (10) (10) OM/Desktop/lizzay%20assignments/ACC%20622620ASSIGN=6202022.pdf Mortgage loan: Nesko Mortgage 56 892.50 Current liabilities 35 886.04 Trade creditors 20 131.19 Amdex credit card 15 754.84 Total equity and liabilities 1 431 940.35 Comparative figures: Ratio Industry averages Ratio for the years ended 30 November 2015 2014 The return on average owner's equity 58.00% 51.00% Return on average owner's equity Current ratio Average trade debtors collection period for the industry is 60 % The current ratio for the industry is 2:1 The average trade debtors collection period for the industry is 24 days I 3:1 1.5:1 8 9 REQUIRED: Calculate the following ratios for the year ended 30 November 2016 and comment on the business's profitability and liquidity. Refer in particular to the past figures shown above. Note that one point will be allocated for every formula quoted. 1.1 Return on average owner's equity 1.2 Current ratio 1.3 Average trade debtor's collection period (10) (10) (10) OM/Desktop/lizzay%20assignments/ACC%20622620ASSIGN=6202022.pdf Mortgage loan: Nesko Mortgage 56 892.50 Current liabilities 35 886.04 Trade creditors 20 131.19 Amdex credit card 15 754.84 Total equity and liabilities 1 431 940.35 Comparative figures: Ratio Industry averages Ratio for the years ended 30 November 2015 2014 The return on average owner's equity 58.00% 51.00% Return on average owner's equity Current ratio Average trade debtors collection period for the industry is 60 % The current ratio for the industry is 2:1 The average trade debtors collection period for the industry is 24 days I 3:1 1.5:1 8 9 REQUIRED: Calculate the following ratios for the year ended 30 November 2016 and comment on the business's profitability and liquidity. Refer in particular to the past figures shown above. Note that one point will be allocated for every formula quoted. 1.1 Return on average owner's equity 1.2 Current ratio 1.3 Average trade debtor's collection period (10) (10) (10) RATIOS The following financial information relates to Tasty Desserts Bakery at the end of their financial year: Extract from the general ledger: Trading Account Date Details Amount Date 2016 30 Cost of sales 472 645.35 Details Sales Amount 875 269.1 Nov. Profit and loss 402 623.81 875 269.16 875 269.16 Date Details 2016 30 Rent expense Nov. Profit and Loss Account Rates and services Telephone expense Interest expense Wages and salaries Internet expense Bank charges Settlement discount granted Office consumables Insurance expense Capital (Net profit) Amount Date 27 570.98 2016 Details 30 Trading account 15 317.21 Nov. Services rendered Amount 402 623.81 13 129.04 16 227.42 Interest income 10 765.81 6 126.88 38 511.84 4 376.35 3 676.13 6 827.10 10 590.76 8 315.06 288 978.86 426 518.66 426 518,66 Additional information: 1. No capital contributions were made during the year. 2. Assume a 365-day year. 64 % of all sales are on credit. 3. 4. Purchases constitute 60% of cost of sales. 48 % of all purchases are on credit