Question
The financial data of ABC Corp. for the year ending 31-12-2018 is as follows: $ Cash 2,60,000 Sundry debtors 7,50,000 Short term investment 4,00,000 Stock
The financial data of ABC Corp. for the year ending 31-12-2018 is as follows:
$ | |
Cash | 2,60,000 |
Sundry debtors | 7,50,000 |
Short term investment | 4,00,000 |
Stock | 21,00,000 |
Prepaid expenses | 45,000 |
Total current assets: $35,55,000
$ | |
Current liabilities | 10,50,000 |
9% Debentures | 14,00,000 |
Equity share capital | 23,50,000 |
Retained earnings | 12,00,000 |
Statement of Profit for the year ending 31-12-2018
$ | |
Sales (25% cash sales) | 87,00,000 |
Less: Cost of goods sold | 60,00,000 |
Profit before interest & tax | 27,00,000 |
Less: Interest | 2,80,000 |
Profit before tax | 24,20,000 |
Less: Tax @25% | 6,05,000 |
Net Profit: $18,15,000
Calculate: (i) Current ratio, (ii) Long-term debt to equity ratio, (iii) Operating profit margin, and (iv) Inventory holding period.
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