Asset turnover Gearing Ratio

Financial Accounting
15th Edition
ISBN:9781337272124
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter6: Accounting For Merchandising Businesses
Section: Chapter Questions
Problem 36E: The following data were extracted from the accounting records of Harkins Company for the year ended...
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Balance Sheet of Chanda as at 31/12/2019
7 Particulars
Amount in K
Amount in K
B Assets:
e Current Assets:
O Cash
1 Trade Receivalbes
3200
74480
84000
2 Inventory at 31/12/19
3 Prepaid Expenses
4 Fixed Assets:
5 Building (Note 1)
Plant (Note 2)
600
162280
196400
63000
259400
7 Total Assets
421680
Liabilities and Capital:
O Current Liabilities:
1 Trade Payables
2 Wages and Salaries payable
3 Interest Payable
4 Non Current Liabilities:
72000
1600
1000
74600
5 10% Loan
20000
20000
5 Total Liabilities
7 Capital:
3 Capital at 01/01/2019
9 Less: Drawings
D Add: Net Profit
1 Capital at 31/12/2019
2 Total liabilities and Capital
94600
282600
-48000
92480
327080
421680
Find the following
Asset turnover
• Gearing Ratio
• Gross Profit Margin (GPM)
Net Profit Margin (NPM)
• Return on Capital Employed (ROCE)
• Current ratio
• Acid test ratio
Transcribed Image Text:Balance Sheet of Chanda as at 31/12/2019 7 Particulars Amount in K Amount in K B Assets: e Current Assets: O Cash 1 Trade Receivalbes 3200 74480 84000 2 Inventory at 31/12/19 3 Prepaid Expenses 4 Fixed Assets: 5 Building (Note 1) Plant (Note 2) 600 162280 196400 63000 259400 7 Total Assets 421680 Liabilities and Capital: O Current Liabilities: 1 Trade Payables 2 Wages and Salaries payable 3 Interest Payable 4 Non Current Liabilities: 72000 1600 1000 74600 5 10% Loan 20000 20000 5 Total Liabilities 7 Capital: 3 Capital at 01/01/2019 9 Less: Drawings D Add: Net Profit 1 Capital at 31/12/2019 2 Total liabilities and Capital 94600 282600 -48000 92480 327080 421680 Find the following Asset turnover • Gearing Ratio • Gross Profit Margin (GPM) Net Profit Margin (NPM) • Return on Capital Employed (ROCE) • Current ratio • Acid test ratio
Statement of Profit or Loss of Chanda as at 31/12/2019
Particulars
Amount in K
Amount in K
iSales
S08800
-36000
-4400
Less: Discount Allowed
Less: Return Inwards
768400
Less: Cost of Goods Sold:
Inventory at 01/01/2019
100000
Add: Purchases
500000
Less: Return Outwards
Less: Discount Received
Less: Closing Inventories
-30000
-9600
-84000
476400
Gross Profit
292000
Less: Selling and Admin. Expense:
Wages and salaries
Bad debts
Other Expense
Interest expense on Loan
Depreciation Expense
On Building
On Plant
119200
9720
45000
1000
3600
21000
199520
Net Income
92480
Transcribed Image Text:Statement of Profit or Loss of Chanda as at 31/12/2019 Particulars Amount in K Amount in K iSales S08800 -36000 -4400 Less: Discount Allowed Less: Return Inwards 768400 Less: Cost of Goods Sold: Inventory at 01/01/2019 100000 Add: Purchases 500000 Less: Return Outwards Less: Discount Received Less: Closing Inventories -30000 -9600 -84000 476400 Gross Profit 292000 Less: Selling and Admin. Expense: Wages and salaries Bad debts Other Expense Interest expense on Loan Depreciation Expense On Building On Plant 119200 9720 45000 1000 3600 21000 199520 Net Income 92480
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