Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. this one question additional questions 1. the

This one question Additional questions 1. The condensed results from...

90.2K

Verified Solution

Question

Accounting

This one question
image
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: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Accounting
1.2K views

What is an activity? Give some examples of activities within amanufacturing firm.What is a...What...

Basic Math
1.2K views

Does pollution increase mean death rate? A researcher sampled 31 “unpolluted” areas greater than 50 km...

Chemistry
1.2K views

Part 2 – Comparing the reactivity of some metals with acids Many metals react with acids,...

Chemistry
1.2K views

A beaker with 175 ml of an acetic acid buffer with a pH of 5.0 is sitting...

Biology
1.2K views

POSSIBLE Traits that are better adapted to an environment will increase in frequency in a...

Biology
1.2K views

Suppose than an individual has taken a huge dose of dinitrophenol DNP an uncoupler of...

Algebra
1.2K views

Explain how we get the S by equivalent relation.

Accounting
1.2K views

Why is it important for an organization to have policies on access privileges,...

Accounting
1.2K views

What entry would Oswego make on April 12? Multiple Choice

Accounting
1.2K views

question 1) Evaluate how both cost schedules and income statement will change if the following...

Accounting
1.2K views

On January 2, 2023. Kornis Corporation acquired equipment for $1,000,000. The estimated life of the...

Accounting
1.2K views

Prepare the appropriate journal entries to record the transactions for the year, 20X1, including any...