Question
The financial information of UVW Corporation for the year ending 31-12-2021 is as follows: $ Cash 1,75,000 Sundry debtors 5,25,000 Short term investment 3,75,000 Stock
The financial information of UVW Corporation for the year ending 31-12-2021 is as follows:
$ | |
Cash | 1,75,000 |
Sundry debtors | 5,25,000 |
Short term investment | 3,75,000 |
Stock | 17,00,000 |
Prepaid expenses | 50,000 |
Total current assets: $28,25,000
$ | |
Current liabilities | 8,75,000 |
11% Debentures | 19,00,000 |
Equity share capital | 26,00,000 |
Retained earnings | 14,00,000 |
Statement of Profit for the year ending 31-12-2021
$ | |
Sales (40% cash sales) | 85,00,000 |
Less: Cost of goods sold | 60,00,000 |
Profit before interest & tax | 25,00,000 |
Less: Interest | 3,00,000 |
Profit before tax | 22,00,000 |
Less: Tax @30% | 6,60,000 |
Net Profit: $15,40,000
Calculate: (i) Quick assets ratio, (ii) Debt to total assets ratio, (iii) Net profit ratio, and (iv) Average payment period.
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