Question
Rejected Ltd reports the following information: $000 Total assets Profit after tax Current liabilities Non-current liabilities 1 920 65 570 830 $000 Interest revenue Interest
Rejected Ltd reports the following information:
| $000 |
Total assets Profit after tax Current liabilities Non-current liabilities | 1 920 65 570 830 |
| $000 |
Interest revenue Interest expense Tax expense | 110 160 45 |
Current assets = 50% of total assets |
|
From this information, calculate and interpret the following ratios (year-end figures will have to be used because the comparative year figures are not available) and prepare a report on the financial position and performance of Rejected Ltd:
a. liquidity ratio
b. return on equity
c. return on assets using:
i. profit
ii. EBIT
d. debt ratio
e. Report on the financial position and performance of Rejected Ltd
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