Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Please can someone assit me. I am really stuck with this question Based on the above financial statements for two consecutive years, calculate the following

Please can someone assit me. I am really stuck with this question

image text in transcribed

image text in transcribed

Based on the above financial statements for two consecutive years, calculate the following ratios of both years and compare it with the provided industry norms. Show formulas, calculations and comparison to industry norm. 3.1) Current Ratio (Industry Norm: 2:1) 3.2) Stock turnover Ratio (Industry Norm: 2.5 times) 3.3) Number of days in stock (360-day year) (Industry Norm: 75 days) 3.4) Number of days in Debtors ( 360 day year) (Industry Norm: 45 days) 3.5) Gross Profit (Industry Norm: 50\%) Based on the above financial statements for two consecutive years, calculate the following ratios of both years and compare it with the provided industry norms. Show formulas, calculations and comparison to industry norm. 3.1) Current Ratio (Industry Norm: 2:1) 3.2) Stock turnover Ratio (Industry Norm: 2.5 times) 3.3) Number of days in stock (360-day year) (Industry Norm: 75 days) 3.4) Number of days in Debtors (360 day year) (Industry Norm: 45 days) 3.5) Gross Profit (Industry Norm: 50\%)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image_2

Step: 3

blur-text-image_3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Accounting And Finance For Non Specialists

Authors: Eddie McLaney, Peter Atrill

2nd Edition

0135717469, 9780135717462

More Books

Students also viewed these Accounting questions