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Question #9 Accounting ratios provide ABC Ltd with vital information that the company utilizes in an effort to improve its annual financial performance. For the
Question #9
Accounting ratios provide ABC Ltd with vital information that the company utilizes in an effort to improve its annual financial performance. For the financial year ending October 31, 2020 the following information was extracted from the companys records:
Details | $ |
Cost of sales | 8,000,000 |
Closing stock | 2,000,000 |
Net sales | 20,000,000 |
Accounts receivable | 4,000,000 |
Opening stock | 3,000,000 |
Operating expenses | 6,500,000 |
Cash | 3,000,000 |
Creditors | 2,000,000 |
Required:
- Gross profit percentage.
- Net profit percentage.
- Current ratio.
- Liquid ratio.
- Working capital.
- Average stock.
- Stock turnover.
- Average/debtors collection period
- Interpret the results obtained for (c) and (h) above. TYPE PLEASE
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