Question
Toyota Limited is a vehicle manufacturer company. Extracts of the Statements of Profit and Loss and Other Comprehensive Income of Hyundai Limited for the years
Toyota Limited is a vehicle manufacturer company. Extracts of the Statements of Profit and Loss and Other Comprehensive Income of Hyundai Limited for the years ended 31st March 2020, 31st March 2019, and 31st March 2018 and extracts of the Statements of Financial Position as at 31st March 2020, 31st March 2019 and 31st March 2018 are as follows.
Table: Extracts of Statements of P&L and other comprehensive income ($.000)
For the year ended | 31st March 2020 | 31st March 2019 | 31st March 2018 |
Turnover | 127,500 | 105,000 | 133,000 |
Cost of sales | 88,500 | 71,200 | 93,100 |
Gross profit | 39,000 | 33,800 | 39,900 |
Income tax | 2,240 | 1,070 | 1,980 |
Profit after tax | 8,020 | 8,130 | 12,020 |
Interest | 500 | 1000 | 600 |
Table : Extracts of Statements of Financial Position ($.000)
As at | 31st March 2020 | 31st March 2019 | 31st March 2018 |
Current assets | 20,470 | 26,260 | 38,000 |
Current liabilities | 13,200 | 17,875 | 12,280 |
Trade receivables | 15,460 | 14,220 | 18,900 |
Trade payables | 6,400 | 6,100 | 8,440 |
Inventory | 2,680 | 11,530 | 18,650 |
Shareholders' equity | 39,540 | 31,520 | 23,390 |
You may assume that the credit sale is 55% from the total turnover. Further, 90% of cost of sales consists of purchases and out of that 70% is on credit terms.
You are required to calculate the following ratios for the years ended / as at 31st March 2020 and 31st March 2019:
a) Quick Assets Ratio.
b) Debtors Collection Period
c) Return on Capital Employed (ROCE)
d) Net Profit 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