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Q . 9 The following information has been extracted from the accounts of Witton Way Inc. Additional information During the year to 3 0 April
Q The following information has been extracted from the accounts
of Witton Way Inc.
Additional information
During the year to April the company tried to stimulate
sales by reducing the selling price of its products and by offering
more generous credit terms to its customers.
Required:
Calculate each of the following ratios for the two years ended
April and
a Gross profit ratio.
b Return on capital employed.
c Current ratio.
d Acid test ratio.
e Trade receivable collection period.
f Inventory turnover.
and comment on your findings.
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