Chapter 18 Extra review questions

Transcription

1 Accounting for Non-Accountants 10th Online Material 1 Chapter 18 Extra review questions 1 From the data presented below, calculate the following ratios for 2020 and 2021: Gross profit margin Current ratio Net profit margin Acid test ratio ROCE Gearing Inventory turnover Debt/equity ratio Bellwood Ltd: Extracts from financial statements for year-end Sales 58,000 74,000 Cost of sales 24,000 32,000 Gross profit 34,000 42,000 Expenses 19,500 24,000 Net profit 14,500 18,000 Non-current assets 290, ,000 Inventory 2,310 3,480 Receivables 8,145 9,110 Bank 2, ,645 13,150 Current liabilities 7,895 9,940 Net current assets 4,750 3,210 Non-current liabilities 45,000 65,000 Net assets 294, ,210 Capital 294, ,210

2 2 Accounting for Non-Accountants 10th Online Material Gross profit margin 58.6% 56.8% Net profit margin 25.0% 24.3% ROCE 4.9% 5.7% Inventory turnover 35.1 days 39.7 days Current ratio Acid test ratio Gearing 13.2% 17.0% Debt/equity ratio 15.3% 20.4% 2 From the data presented below, calculate the following ratios for 2018 and 2019: Gross profit margin Current ratio Net profit margin Acid test ratio ROCE Gearing Inventory turnover Debt/equity ratio JBE Ltd: Extracts from financial statements for year-end Sales 280, ,100 Cost of sales 181, ,100 Gross profit 99, ,000 Expenses 56,756 24,000 Net profit 42,735 94,000 Non-current assets 556, ,000 Inventory 21,314 43,141 Receivables 17,631 12,111 Bank 8,797 5,520 47,742 60,772 Current liabilities 31,231 55,345 Net current assets 16,511 5,427 Non-current liabilities 125, ,000 Net assets 572, ,427 Capital 572, ,427

3 Accounting for Non-Accountants 10th Online Material Gross profit margin 35.4% 37.7% Net profit margin 15.2% 30.0% ROCE 7.5% 15.0% Inventory turnover 42.9 days 80.7 days Current ratio Acid test ratio Gearing % Debt/equity ratio 21.8% 20.0% 3 The following information is available for the last two years of trading for Coco-Bongo Ltd: 31 July July 2017 Sales 325, ,000 Purchases 190, ,000 As at 31 July 2016 As at 31 July 2017 Trade receivables 24,140 31,410 Balance at bank 7, Trade payables 13,110 8,508 (a) Calculate both the trade receivables collection period and the trade payables payment period for each of the two years. (b) Calculate the acid test ratio for each of the two years Trade receivables collection period days days Trade payables collection period days days Acid test ratio

4 4 Accounting for Non-Accountants 10th Online Material 4 The following information is available for the last two years of trading for Lucas Ltd: 31 Aug Aug 2018 Sales 99, ,100 Purchases 74,300 80,900 As at 31 Aug 2017 As at 31 Aug 2018 Trade receivables 24,140 31,410 Balance at bank 7, Trade payables 13,110 8,508 (a) Calculate both the trade receivables collection period and the trade payables payment period for each of the two years. (b) Calculate the acid test ratio for each of the two years Trade receivables collection period 88.3 days 93.1 days Trade payables payment period 64.4 days 38.4 days Acid test ratio The following data relates to the financial statements of Clown Ltd: Inventory 11,804 14,101 Trade receivables 7,883 8,980 Cash at bank 4,131 1,210 23,818 24,291 Current liabilities Trade payables 9,808 11,230 From the above information, calculate for both years: (a) Current ratio (b) Acid test ratio

5 Accounting for Non-Accountants 10th Online Material Current ratio Acid test ratio The following data relates to the financial statements of T Barker: Inventory 8,701 12,311 Trade receivables 4,324 3,890 Cash at bank 2,120 15,145 16,201 Current liabilities Trade payables 6,543 7,781 Bank overdraft 2,131 6,543 9,912 From the above information, calculate for both years: (a) Current ratio (b) Acid test ratio Current ratio Acid test ratio The following data relates to extracts from the financial statements of Haxell Ltd for the year ended 31 December 2017: 000 Turnover 600 Gross profit 420 Net profit 95 Dividends 35

6 6 Accounting for Non-Accountants 10th Online Material Non-current assets 2, Current liabilities 270 Net current assets 110 2,110 Non-current liabilities Debentures 700 1,410 Equity Ordinary shares of 1 each 800 Reserves 610 1,410 The value of inventory as at 31 December 2017 was 180,000. The market price of an ordinary share on 31 December 2017 was From this data, calculate the following ratios: gross profit margin; net profit margin; return on capital employed; acid test ratio; current ratio; dividend yield; debt/equity ratio; gearing. Gross profit margin 70% Net profit margin 15.8% Return on capital employed 4.5% Acid test ratio 0.74 Current ratio 1.41 Dividend yield 1.94% Debt/equity ratio 49.7% Gearing 33.2%