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The financial records of MNO Corp. reveal the following for the fiscal year ending 30-09-2022: Current Assets: Cash: $3,00,000 Sundry debtors: $4,50,000 Short term investment:

The financial records of MNO Corp. reveal the following for the fiscal year ending 30-09-2022:

Current Assets:

  • Cash: $3,00,000
  • Sundry debtors: $4,50,000
  • Short term investment: $2,00,000
  • Stock: $21,00,000
  • Prepaid expenses: $35,000

Current Liabilities and Equity:

  • Current liabilities: $7,50,000
  • 10% Debentures: $20,00,000
  • Equity share capital: $25,00,000
  • Retained earnings: $15,00,000

Profit & Loss Statement:

  • Sales (45% cash sales): $75,00,000
  • Less: Cost of goods sold: $55,00,000
  • Profit before interest & tax: $20,00,000
  • Less: Interest: $2,25,000
  • Profit before tax: $17,75,000
  • Less: Tax @32%: $5,68,000

Net Profit: $12,07,000

Calculate: (i) Working capital turnover ratio, (ii) Long-term debt to equity ratio, (iii) Operating profit margin, and (iv) Inventory holding period.

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