Question
The financial data of GHI Ltd. for the year ending 31-12-2020 is as follows: $ Cash 1,70,000 Sundry debtors 4,75,000 Short term investment 2,75,000 Stock
The financial data of GHI Ltd. for the year ending 31-12-2020 is as follows:
$ | |
Cash | 1,70,000 |
Sundry debtors | 4,75,000 |
Short term investment | 2,75,000 |
Stock | 22,50,000 |
Prepaid expenses | 55,000 |
Total current assets: $31,25,000
$ | |
Current liabilities | 8,00,000 |
11% Debentures | 13,50,000 |
Equity share capital | 20,00,000 |
Retained earnings | 9,00,000 |
Statement of Profit for the year ending 31-12-2020
$ | |
Sales (30% cash sales) | 78,00,000 |
Less: Cost of goods sold | 56,00,000 |
Profit before interest & tax | 22,00,000 |
Less: Interest | 2,60,000 |
Profit before tax | 19,40,000 |
Less: Tax @28% | 5,43,200 |
Net Profit: $13,96,800
Calculate: (i) Quick assets ratio, (ii) Long-term debt to equity ratio, (iii) Operating profit margin, and (iv) Receivables conversion period.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started