Question
QuestionONE: You as Chief Financial Officer of Goodwill Plc, has compiled the followinginformationandratiosfromtheIncomeStatementandStatementofFinancialAffairs asat31.03.2016. Selected balances from Income Statement and Statement ofFinancialAffairs : K'Million Cashandmarketable
QuestionONE:
You as Chief Financial Officer of Goodwill Plc, has compiled the followinginformationandratiosfromtheIncomeStatementandStatementofFinancialAffairs asat31.03.2016.
- Selected balances from Income Statement and Statement ofFinancialAffairs:
K'Million
Cashandmarketable securities | 100.00 | |
FixedAssets | 283.50 | |
Sales | 1,000.00 | |
NetIncome | 50.00 |
- Ratios:
QuickRatio | 2:1 |
Current Ratio | 3:1 |
Dayssalesoutstanding(DSO) | 40.55days |
ReturnonEquity(ROE) | 12% |
NotethatGoodwill Plchadnopreferredstock. Itonlyhadordinaryshares, currentliabilitiesandlong-term debt.
Required:
FindforGoodwill Plc,determinethefollowing:
- Accountsreceivable 10Marks
- Currentliabilities 5Marks
- CurrentAssets 5Marks
- TotalAssets 10Marks
- Returnonassets(ROA) 10 MarksTOTAL Total=40Marks
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Horngrens Financial & Managerial Accounting The Financial Chapters
Authors: Tracie L. Miller Nobles, Brenda L. Mattison, Ella Mae Matsumura
4th Edition
0133255573, 978-0133255577
