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Question 2 Alex is currently considering to invest his money in one of the companies between Company A and Company B. The summarized final accounts of the companies for their last completed financial year are as follows:  a. Calculate the following ratios for Company A and Company B. State clearly the formulae used for each ratio: v. Payables Payment Period (days) vi. Current Ratio vii. Quick Ratio

Question 2 Alex is currently considering to invest his money in one of the companies between Company A and Company B. The summarized final accounts of the companies for their last completed financial year are as follows:  a. Calculate the following ratios for Company A and Company B. State clearly the formulae used for each ratio: v. Payables Payment Period (days) vi. Current Ratio vii. Quick Ratio

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Question 2
Alex is currently considering to invest his money in one of the companies between Company A and Company B. The summarized final accounts of the companies for their last completed financial year are as follows: 

a. Calculate the following ratios for Company A and Company B. State clearly the formulae used for each ratio:

v. Payables Payment Period (days)
vi. Current Ratio
vii. Quick Ratio 

Statements of Comprehenslve Income Company A RM Company B RM RM RM Sales Cost of sales Gross profit Less: Administration expenses Selling and distribution 160,000 (120.000) 40,000 240,000 (180.000) 60,000 12,000 18,000 6,000 9,500 expenses Other operating expenses Financial expenses 10,000 3,000 14,000 500 (31,000) 9,000 (42,000) 18,000 Net profit .3/-
Transcribed Image Text:Statements of Comprehenslve Income Company A RM Company B RM RM RM Sales Cost of sales Gross profit Less: Administration expenses Selling and distribution 160,000 (120.000) 40,000 240,000 (180.000) 60,000 12,000 18,000 6,000 9,500 expenses Other operating expenses Financial expenses 10,000 3,000 14,000 500 (31,000) 9,000 (42,000) 18,000 Net profit .3/-
Company A Company B RM RM RM RM Statements of Financlal Position Non- current Assets 80,000 180,000 Current Assets Inventory Receivables Bank 30,000 6,000 4,000 50,000 20,000 10.000 40,000 120,000 80,000 260,000 Total Asset Capital and reserves Ördinary share capital Accumulated profits 60,000 20,000 80,000 160,000 75,000 235,000 Non Current liabilities 10% Loan stock 30,000 5,000 Current liabilities Payables Total Capital and reserves 10,000 120,000 20,000 260,000
Transcribed Image Text:Company A Company B RM RM RM RM Statements of Financlal Position Non- current Assets 80,000 180,000 Current Assets Inventory Receivables Bank 30,000 6,000 4,000 50,000 20,000 10.000 40,000 120,000 80,000 260,000 Total Asset Capital and reserves Ördinary share capital Accumulated profits 60,000 20,000 80,000 160,000 75,000 235,000 Non Current liabilities 10% Loan stock 30,000 5,000 Current liabilities Payables Total Capital and reserves 10,000 120,000 20,000 260,000
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