Question
Use data provided to answer the questions that follow to Newtech Ltd for 2017. Assest no current 2017- 4200 00, 2016- 3 000 000. inventory
Use data provided to answer the questions that follow to Newtech Ltd for 2017. Assest no current 2017- 4200 00, 2016- 3 000 000. inventory 2017 - 400 000, 2016 - 600 000 Receivables 2017 - 1 550 000, 2016 - 1 200 000 Cash 2017 - 600 000 , 2016 - 300 000 Equity and Liabilities, Share Capital (2 shares) 2017 - 4 200 000, 2016 - 4 000 000 Retained Income 2017 - 600 000, 2016 - 300 000. Long Term debt 2017 - 250 000, 2016 - 200 000. Payable 2017 - 1 700 000, 2016 - 600 000. The abbreviated statement of comprehensive for the year ended 2017: Sales (10% on credit) 10 200 000, Cost of sales (80% on credit) 4 080 000, Expenses 3 200 000, Net Income after tax 2 000 000, Dividends 1 700 000, Retained income 3 000 000 3.1 Required calculate the net profit turnover for 2017 3.2 calculate the earnings yield and dividend yield for 2017 and explain their significance to (prospective) shareholders 3.3 Account payable turnover 3.3.1 calculate the account payable period (in days) noting that Nwetech Ltd has after tough negotiations secured a 90 day account all its creditors 3.3.2 is this an ideal situation? offer constructive sdvice to Newtech traders 3.4 calculate the return on equity. Would shareholders be happy with current return. Why not? 3.5 calculate the inventory ratio (use average inventory) and explain the significance of this ration
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