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QUESTION 3 The following information furnished by Ravi Sharma Manufacturing for measuring financial performance by calculating the ratios. The list of assets, equity and liability
QUESTION 3 The following information furnished by Ravi Sharma Manufacturing for measuring financial performance by calculating the ratios. The list of assets, equity and liability is given below: - Amount (OMR) 400,000 250,000 Assets Land and Building Plant and Equipment Furniture and Fitting Inventories Accounts and other receivables Cash Bank Equity & Liabilities Equity Share Capital Bonds Payable Accounts Payable Outstanding expenses Short term Bank borrowing 35,000 200,000 55,000 20,000 50,000 400,000 200,000 220,000 40,000 150,000 The list of Income statement items is given below: - Sales Cost of goods sold General and Administrative Expenses Selling and Marketing Expenses Depreciation Expenses Interest Expenses Taxes Amount (OMR) 1,650,000 300,000 65,000 35,000 20,000 30,000 45,000 Additional Information: 1. Dividend paid by the company in the year 2020 is RO 10,000. 2. The face value of each share is RO 0.400. 3. The market price of shares at end 2020 is RO 0.700. _[5 Marks] Requirement: You are required to calculate: - 1. Earnings per share 2. Interest cover 3. Dividend cover 4. Price/Earnings ratio 5. Gross Profit Margin Ratio 6. Operating profit Ratio 7. Return on Assets. 8. Return on Working Capital Ratio 9. Current Ratio 10. Quick Ratio
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