Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Use the given information to do the following calculations: 2.1 Current ratio 2.2 Debtors' collection period 2.3Stock turnover 2.4Net margin 2.5 Solvency ratio (Round off

image text in transcribed

Use the given information to do the following calculations: 2.1 Current ratio 2.2 Debtors' collection period 2.3Stock turnover 2.4Net margin 2.5 Solvency ratio (Round off all your calculations to two after the comma). List of balances on 31 December 2020: R Stock (1/1/2020) 99 200 Stock (31/12/2020) 92 900 Creditors 34 500 Loan: ABSA 65 000 Debtors 37 700 Equipment 53 800 Sales (60% on credit)230 000 Net profit 31 200 Expenses prepaid 460 Accumulated depreciation: Vehicles 1900 Investment: FNB 25 000 Income received in advance 2 400 Land and buildings200 000 Purchases (100% on credit)150 000 Bank (dr) 5380 Vehicles 68 900 Accumulated depreciation: Equipment 2 800 Provision for doubtful debts 1700 Expenses accrued 2 200

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered 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

Using Financial Accounting Information The Alternative to Debits and Credits

Authors: Gary A. Porter, Curtis L. Norton

7th Edition

978-0-538-4527, 0-538-45274-9, 978-1133161646

Students also viewed these Accounting questions