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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
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)
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