4. The following balances were extracted from the books of Jojo Advance Marketing Company Limited on 31 December, 2008 Authorised Capital 300 000 @ $2 per share Paid-Up Capital 40 000 @ $2 per share General Reserves Profit and Loss Appropriation (credit balance) Provision for dividend Accounts receivable Operating expenses Accounts payable Sales (credit sales -60%) Stock at 31 December, 2008 Prepaid Expenses Mortgage Gross profit Bank overdraft (limit $25 000) Non-Current Assets at book Value $ 600 000 80 000 30 000 47 800 10 000 29 700 40 700 25 500 270 000 65 000 600 30 000 158 100 30 000 158 000 Additional information: 1. Stock on 1 January 2008 was $46 900. 2. Accounts Receivable on 1 January, 2008 $32 940. 3. The company normally allows 30 days credit facility to debtors and operates for 300 days in a year. Note: Treat each question independently Required: Using the following information, calculate to two decimal places, the following ratios and percentages. Show full working and formula
4. The following balances were extracted from the books of Jojo Advance Marketing Company Limited on 31 December, 2008 Authorised Capital 300 000 @ $2 per share Paid-Up Capital 40 000 @ $2 per share General Reserves Profit and Loss Appropriation (credit balance) Provision for dividend Accounts receivable Operating expenses Accounts payable Sales (credit sales -60%) Stock at 31 December, 2008 Prepaid Expenses Mortgage Gross profit Bank overdraft (limit $25 000) Non-Current Assets at book Value $ 600 000 80 000 30 000 47 800 10 000 29 700 40 700 25 500 270 000 65 000 600 30 000 158 100 30 000 158 000 Additional information: 1. Stock on 1 January 2008 was $46 900. 2. Accounts Receivable on 1 January, 2008 $32 940. 3. The company normally allows 30 days credit facility to debtors and operates for 300 days in a year. Note: Treat each question independently Required: Using the following information, calculate to two decimal places, the following ratios and percentages. Show full working and formula
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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please kindly provide answers for PART B as well
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pls kindly advise as how did u come to current liabilities as 54500.00, pls provide explanantion and workings
ii)
It measures a company's ability whether the company is able to pay its short-term debts.
Therefore, the current ratio = ($ 95300 / $ 54500) = 1.75 times.
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