Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Subject: investment management (FIN201) A. a. Henry Black Ltds Balance Sheet as at 30 June, 2021 and Profit and Loss Statement for the financial year

Subject: investment management (FIN201) A. a. Henry Black Ltds Balance Sheet as at 30 June, 2021 and Profit and Loss Statement for the financial year ending 30 June, 2021 (2020-21) contained the following items : - Accounts Receivable (and Average Accounts Receivable for 2020-21), $50,000,000 - Inventories (and Average Inventories for 2020-21), $80,000,000 - Other Assets, $270,000,000 - Total Liabilities (Current and Long-term), $150,000,000 - Issued and paid-up capital 15,000,000 fully paid ordinary shares $150,000,000 - Other Shareholders Equity Items, being Reserves and Retained Earnings, $100,000,000 - Sales (all credit), $800,000,000 - Cost of sales, $600,000,000 - Earnings before Interest and Taxes (EBIT), $100,000,000 - Interest Expense, $20,000,000 (paid on Total Liabilities above) - Company Income Tax Rate, 30% - Interest rate on Total Liabilities, 13.3333% . Additional information. All reported items and the resultant profit or loss figures relate to the companys basic operations. The company operates in a competitive industry. REQUIRED : Calculate as at 30 June, 2021, the following financial ratios for Henry Black Ltd : i. Return on sales (also known as profit margin or operating profit margin) ii. Return on assets (ROA) iii. Return on equity (ROE) iv. Interest coverage v. Debt to equity vi. Inventory turnover vii. Average receivable turnover viii. Average collection period [NOTE: Show all workings.]

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Ressourceneffizientes Wirtschaften

Authors: Heinz Karl Prammer

2nd Edition

3658046082, 9783658046088

More Books

Students also viewed these Accounting questions