This one question Additional questions 1. The condensed results from...
90.2K
Verified Solution
Link Copied!
Question
Accounting
This one question
Additional questions 1. The condensed results from the books of The Green Basket for the year 2016 were as follows: Fixed assets 475,000 Capital & reserves 475.000 10% Lean 125.000 Current assets Stock Debtors Bank Current liabilities 50,000 45,000 75.000 55.000 175.000 650,000 650.000 Sales 820.000 Gross profit 410,000 PBIT 300.000 Additional information There are no preference shares in issue 2 Tax rate is 20%, to be charged on profit before tax 3. All sales are made on eredit terms Date available from the industry report included the following Current ratio 2.730 Return on capital employed 32.22% Acid test ratio 1.02 1 Gearing 40.94% Debtors turnover 8.65 times Stock turnover 6.21 times Net profit margin 22.02% Total assets to total liabilities 2.23: Return on assets 32 86% Required: a. Calculate the corresponding ratios to the industry for Green Basket. b. Using the industry averages stated above, comment on the performance of Green Basket in relation to the industry. 3
Answer & Explanation
Solved by verified expert
Get Answers to Unlimited Questions
Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!
Membership Benefits:
Unlimited Question Access with detailed Answers
Zin AI - 3 Million Words
10 Dall-E 3 Images
20 Plot Generations
Conversation with Dialogue Memory
No Ads, Ever!
Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
