FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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(a) You are required to calculate the following ratios:
(i) Gross profit margin
(ii) Operating profit margin
(iii) Expenses to sales
(iv) Return on Capital Employed
(v) Asset turnover
(vi) Non-current asset turnover
(vii) Current Ratio
(viii) Quick Ratio
(ix) Inventory days
(x) Receivables days
(xi) Payable days
(xii) Interest cover
 

(b) In light of your calculations comment on the performance of the company over the
last two years.

Marsh Company Income Statement for the year ends
Revenue
Cost of Sales
Gross Profit
Expenses
Operating Profit
Interest Payable
Profit Before Tax
Tax
Profit After Tax
Marsh Company Statement of Financial Position
Non-Current assets
Current assets:
Inventory
Receivables
Cash
Payables
Net current assets
Long term loan
Capital
Retained earnings
2019
£ 000
440
(248)
192
(122)
70
(10)
60
(11)
49
2019
£000
405
45 65 17 7卫 45
7
72
450
100
350
250
100
350
2020
£ 000
330
(192)
138
(88)
50
(10)
40
(7)
33
2020
£000
361
28
46
10
84
32
52
413
100
313
250
63
313
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Transcribed Image Text:Marsh Company Income Statement for the year ends Revenue Cost of Sales Gross Profit Expenses Operating Profit Interest Payable Profit Before Tax Tax Profit After Tax Marsh Company Statement of Financial Position Non-Current assets Current assets: Inventory Receivables Cash Payables Net current assets Long term loan Capital Retained earnings 2019 £ 000 440 (248) 192 (122) 70 (10) 60 (11) 49 2019 £000 405 45 65 17 7卫 45 7 72 450 100 350 250 100 350 2020 £ 000 330 (192) 138 (88) 50 (10) 40 (7) 33 2020 £000 361 28 46 10 84 32 52 413 100 313 250 63 313
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is there any chance these other calculcations could be done please?

thank you :)

 

 

     Return on Capital Employed
(v) Asset turnover
(vi) Non-current asset turnover
(vii) Current Ratio
(viii) Quick Ratio
(ix) Inventory days
(x) Receivables days
(xi) Payable days
(xii) Interest cover

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Follow-up Questions
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Follow-up Question

is there any chance these other calculcations could be done please?

thank you :)

 

 

     Return on Capital Employed
(v) Asset turnover
(vi) Non-current asset turnover
(vii) Current Ratio
(viii) Quick Ratio
(ix) Inventory days
(x) Receivables days
(xi) Payable days
(xii) Interest cover

Solution
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by Bartleby Expert
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