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You are provided with the following summarised information relating to Virgo Limited, a wheel caps and rims distributor: Statement of Financial Position ( balance sheet
You are provided with the following summarised information relating to Virgo Limited, a wheel caps and rims distributor:
Statement of Financial Position balance sheet as at December :
R
Assets
Noncurrent assets
Cash
Inventory
Trade debtors
TOTAL ASSETS
Equity
Shareholders Equity
Liabilities
Long term loan pa
Accounts payable
Dividends payable
TOTAL EQUITY AND LIABILITIES
Statement of Comprehensive Income income statement as at December :
R
Sales
Less Cost of Sales
Gross Profit
Operating profit
Interest expense
DIFM YEAR ACADEMIC AND ASSESSMENT CALENDAR DISTANCE
REGENT BUSINESS SCHOOL RBSJULY
Profit before tax
Income taxation
Net profit for the year
Additional Information:
All purchases and sales of inventories are on credit. Inventories on December amounted to R
The authorised share capital consists of shares of which were issued.
Interim dividends paid during the year amounted to R
The shares of Virgo Limited were trading at cents per share on the stocksecurities exchange on December
The following ratios are available as at December and :
Debtors collection period
days
days
Return on equity
Inventory turnover rate
times
times
Acid test ratio
:
:
Debt to Equity
Current ratio
:
Creditors payment period
days
Required:
Use the information provided above to calculate the following ratios for Where applicable, round off answers to two decimal places.
Turnover to net assets
Creditor payment period
Earnings retention ratio
Return on capital employed
Price earnings ratio
Current ratio
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