Question
Use the information provided to answer the following questions. Note: Use formulas provided to answer. The ratios must be expressed to two decimal places. 1
Use the information provided to answer the following questions.
Note: Use formulas provided to answer. The ratios must be expressed to two decimal places.
1 Calculate the percentage profit on sales after the cost of sales only have been accounted for.
2 Has the liquidity of the company improved? Use two relevant ratios to motivate your answer.
3 Use the relevant ratios to comment on the effectiveness with which the company has employed the inventory and debtors during 2022.
4 Use TWO (2) appropriate ratios that shareholders would use to assess the profitability of the company for 2022 by examining the after-tax returns earned. Comment on your calculations.
Extracts of the financial statements of Ultra Limited are presented below: Additional information The authorised share capital of the company consists of 1500000 ordinary shares of which 1000000 have been issued
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