5. From the following data, calculate (a) Gross profit ratio (b) Net profit ratio(c) Return on capital employedOpening stockPurchasesAdministration expSalesRO 80,000RO 13,000Distribution expenses RO 12,000RO 95,000RO 15,000RO 40,000RO 8,000Closing stockCapital employed

Gross profit is aimed at determining the factory profit that an organization has earned for a given…

5. From the following data, calculate (a) Gross profit ratio (b) Net profit ratio (c) Return on capital employed Sales Closing stock Distribution expenses RO 12,000 Capital employed Opening stock Purchases Administration exp RO 80,000 RO 13,000 RO 15,000 RO 40,000 RO 8,000 RO 95,000

5. From the following data, calculate (a) Gross profit ratio (b) Net profit ratio (c) Return on capital employed Sales Closing stock Distribution expenses RO 12,000 Capital employed Opening stock Purchases Administration exp RO 80,000 RO 13,000 RO 15,000 RO 40,000 RO 8,000 RO 95,000

College Accounting, Chapters 1-27

23rd Edition

ISBN:9781337794756

Author:HEINTZ, James A.

Publisher:HEINTZ, James A.

Chapter24: Analysis Of Financial Statements

Section: Chapter Questions

Problem 3CE: Compute the following profitability measures for Esplanade Enterprises for 20-2: (a) Profit margin...

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Concept explainers

Stockholder's Equity

The stockholders’ equity (often referred to as the book value of the company) is the number of assets available to the stockholder after its entire liabilities is paid off. The stockholders’ equity is also sometimes referred to as owner's equity. The stockholders’ equity or book value generally includes common stock, treasury stock retained earnings. It is an indicator of a company's financial strength and is an important item on the company's balance sheet.

Question

5. From the following data, calculate (a) Gross profit ratio (b) Net profit ratio
(c) Return on capital employed
Opening stock
Purchases
Administration exp
Sales
RO 80,000
RO 13,000
Distribution expenses RO 12,000
RO 95,000
RO 15,000
RO 40,000
RO 8,000
Closing stock
Capital employed

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