Answered step by step
Verified Expert Solution
Question
1 Approved Answer
The following information relates to Susubiribi and Asembeba for the year 2022. Profit and Loss Accounts Susubiribi GHS GHS 103,200 Asembeba GHS GHS 154,100 Turnover
The following information relates to Susubiribi and Asembeba for the year 2022. Profit and Loss Accounts Susubiribi GHS GHS 103,200 Asembeba GHS GHS 154,100 Turnover Less: Cost of Sale Opening stock 20,000 50,000 Add: Purchases 7000 6500 27,000 56,500 Less: Closing stock 3,500 23,500 4,700 51,800 Gross Profit 79,700 102,300 Less: Expenses Depreciation 200 400 Other expenses 500 700 100 500 Net Profit 79.000 101.800 Balance sheets as at 31st December, 2022 Susubiribi Asembeba Non-Current Assets GHS GHS GHS GHS Building at cost 600 880 Less: Accumulated depreciation 260 340 180 700 Equipment at cost 500 300 Less: Accumulated depreciation 100 400 50 250 740 950 Current Assets Stocks 120 100 Debtors 100 50 Bank 280 500 150 300 Current Liabilities Creditors Net Current Assets Net Assets 140 360 1.100 120 180 1.130 Financed by: Capital Accounts Balance at start of year 800 900 Add: Net Profit 400 1,200 350 1,250 Less: Drawings 100 120 1,100 1.130 You are required to calculate and comment on the following ratios for Susubiribi Asembeba. a. Gross profit margin b. Net profit margin C. Stock turnover d. Return on capital employed e. Current ratio f. Accounts receivable days g. Accounts payable days h. Net assets turnover i. Debt ratio
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started