Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

The following are the financial statements of Oldfield Limited. Statement of Profit or Loss of Oldfield Limited for Year 2020 and Year 2021 Opening inventory

image text in transcribed image text in transcribed

The following are the financial statements of Oldfield Limited. Statement of Profit or Loss of Oldfield Limited for Year 2020 and Year 2021 Opening inventory as at 1 January 2020 is RM20,000. Required: (Use 365 days in a year to calculate some of the ratios) Calculate and explain the following ratios for the year: i. Current ratio ii. Quick ratio iii. Inventory tumover iv. Accounts receivable collection period (days) v. Account payable payment period (days) vi. Retum on capital employed vii. Gross profit margin viii. Net profit margin ix. Eamings per share x. Price earnings ratio (Each: 4 marks) The following are the financial statements of Oldfield Limited. Statement of Profit or Loss of Oldfield Limited for Year 2020 and Year 2021 Opening inventory as at 1 January 2020 is RM20,000. Required: (Use 365 days in a year to calculate some of the ratios) Calculate and explain the following ratios for the year: i. Current ratio ii. Quick ratio iii. Inventory tumover iv. Accounts receivable collection period (days) v. Account payable payment period (days) vi. Retum on capital employed vii. Gross profit margin viii. Net profit margin ix. Eamings per share x. Price earnings ratio (Each: 4 marks)

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Students also viewed these Accounting questions