Question
The financial overview of ABC Enterprises for the year ending 31-12-2022 is given below: $ Cash 2,80,000 Sundry debtors 6,20,000 Short term investment 3,80,000 Stock
The financial overview of ABC Enterprises for the year ending 31-12-2022 is given below:
$ | |
Cash | 2,80,000 |
Sundry debtors | 6,20,000 |
Short term investment | 3,80,000 |
Stock | 20,00,000 |
Prepaid expenses | 40,000 |
Total current assets: $32,20,000
$ | |
Current liabilities | 10,00,000 |
9% Debentures | 12,50,000 |
Equity share capital | 23,50,000 |
Retained earnings | 8,00,000 |
Statement of Profit for the year ending 31-12-2022
$ | |
Sales (25% cash sales) | 68,00,000 |
Less: Cost of goods sold | 47,00,000 |
Profit before interest & tax | 21,00,000 |
Less: Interest | 1,90,000 |
Profit before tax | 19,10,000 |
Less: Tax @30% | 5,73,000 |
Net Profit: $13,37,000
Calculate: (i) Quick ratio, (ii) Proprietary ratio, (iii) Gross profit margin, and (iv) Receivables turnover ratio.
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