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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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