FIN. ACCT.-TOOLS FOR BUS.DEC.MAKING-CODE
9th Edition
ISBN: 9781119595724
Author: Kimmel
Publisher: WILEY C
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Hello! look at the attached images and answer:
(a) Calculate ratios for the year ended 31 December 2021 (showing your workings) for Primrose Plc, equivalent to those provided above.
i. Return on year-end capital employed
ii. Net asset turnover
iii. Gross profit margin
iv. Net profit margin
v. Current ratio
vi. Closing inventory holding period
vii. Trade receivables’ collection period
viii. Trade payables’ payment period
ix. Dividend yield
x. Dividend cover
(b) Analyse the financial performance and position of Primrose Plc for the year ended 31 December 2021 compared to 31 December 2020.
(c) Explain the uses and the general limitations of ratio analysis.
Thanks a lot!
Calculate following ratios
If you are not able to calculate with the given the information shown, indicate what is missing. After calculating each ratio indicate whether the trend from 2017 to 2018 is good or bad and why.
Year 2018
Year 2017
Return on Assets
Sales to Fixed Assets
Return on Investment
Return on Total Equity
Return on Common Equity
Gross Profit Margin
Current Position Analysis
The following data were taken from the balance sheet of Albertini Company at the end of two recent fiscal years:
Current Year
Previous Year
Current assets:
Cash
$383,000
$294,000
Marketable securities
443,500
330,800
Accounts and notes receivable (net)
181,500
110,200
Inventories
554,400
388,600
Prepaid expenses
285,600
248,400
Total current assets
$1,848,000
$1,372,000
Current liabilities:
Accounts and notes payable
(short-term)
$324,800
$343,000
Accrued liabilities
235,200
147,000
Total current liabilities
$560,000
$490,000
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