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:

1. Gross profit percentage.
2. Net profit percentage.
3. Current ratio.
4. Liquid ratio.
5. Working capital.
6. Average stock.
7. Stock turnover.
8. Average/debtors collection period
9. Interpret the results obtained for (c) and (h) above. TYPE PLEASE