Question
The financial report of UVW Ltd. for the year ending 31-12-2023 is presented below: $ Cash 2,00,000 Sundry debtors 7,00,000 Short term investment 3,80,000 Stock
The financial report of UVW Ltd. for the year ending 31-12-2023 is presented below:
$ | |
Cash | 2,00,000 |
Sundry debtors | 7,00,000 |
Short term investment | 3,80,000 |
Stock | 18,00,000 |
Prepaid expenses | 50,000 |
Total current assets: $31,30,000
$ | |
Current liabilities | 10,00,000 |
9% Debentures | 12,00,000 |
Equity share capital | 25,00,000 |
Retained earnings | 14,00,000 |
Statement of Profit for the year ending 31-12-2023
$ | |
Sales (50% cash sales) | 90,00,000 |
Less: Cost of goods sold | 65,00,000 |
Profit before interest & tax | 25,00,000 |
Less: Interest | 3,20,000 |
Profit before tax | 21,80,000 |
Less: Tax @30% | 6,54,000 |
Net Profit: $15,26,000
Calculate: (i) Current ratio, (ii) Debt to equity ratio, (iii) Gross profit margin, and (iv) Inventory turnover ratio.
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