Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Use the intomation provided below to answer the following questions. (Answers to ratios must be expressed to two decimal places.) 21 Compare and comment on

image text in transcribed

Use the intomation provided below to answer the following questions. (Answers to ratios must be expressed to two decimal places.) 21 Compare and comment on the profitability of both companies by using the following ratios: 21.1 Retum on capital employed (4 marks) 2.12 Profi margin (Net profit margin) (4 marks) 22 Calculate the eamings retention ratio of both companies and explain how shareholders can benefir trom a higher retention ratio. (6 marks) 23 Compare the two companies regarding the amount of debt that each company uses to finance its assets (as a pencentage). (4 marks) 24 Suggest TWO (2) ways in which KUM Limited can improve its gross profit margin ratio, without increasing its selling prices. (2 marks) NFORMATION Exracts for the year ended 31 December 2022 of the Statement of Comprehensive income and Statement of Financial Posibon are given below for wo companies ve. KLM Limuted and ZAP Limited Note: All the income and expenses of both companies are included in the figures above

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored 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

Forensic Accounting And Financial Statement Fraud Forensic Accounting Performance

Authors: Zabihollah Rezaee

1st Edition

1949991075, 978-1949991079

More Books

Students also viewed these Accounting questions

Question

2. What potential barriers would you encourage Samuel to avoid?

Answered: 1 week ago