QUESTION FOUR 290 Notes: Analyais of sales revealed that on average 80\% were made on a credit The final accounts of Gharanu Limited, a food distribution company, for the last basis in each of the years. A breeledown of cost of sales for each of the years sthowed the three years to 30 September are given below: following Trading and profit and loss accounts: 3. Closing deblor's and creditors figures may be taken as representative of the avarages for each of the years in question. 4. The market price of the shares of each of the balance sheet dates was established at: Required (a) Compute the following ratios for each of the three years: (i) After tax profit margin, (ii) Return on equity. (2 marks ) (iii) Dividend yield, (2 marks) (iv) Acid test ratio, (2 marks) (v) Stock holding period in days; (2marks) (2marks) (vi) Financial average multiplier, (2 marks) (vii) Gearing ratio, (2 marks) (viii) Price earnings ratio. (2 marks) QUESTION FOUR 290 Notes: Analyais of sales revealed that on average 80\% were made on a credit The final accounts of Gharanu Limited, a food distribution company, for the last basis in each of the years. A breeledown of cost of sales for each of the years sthowed the three years to 30 September are given below: following Trading and profit and loss accounts: 3. Closing deblor's and creditors figures may be taken as representative of the avarages for each of the years in question. 4. The market price of the shares of each of the balance sheet dates was established at: Required (a) Compute the following ratios for each of the three years: (i) After tax profit margin, (ii) Return on equity. (2 marks ) (iii) Dividend yield, (2 marks) (iv) Acid test ratio, (2 marks) (v) Stock holding period in days; (2marks) (2marks) (vi) Financial average multiplier, (2 marks) (vii) Gearing ratio, (2 marks) (viii) Price earnings ratio. (2 marks)