The following information relates to Bizna Distributor Company for the year ended 31stDec 2009 shs Gross profit 600,000 Opening stock 285,000 Sales 2,400,000 Purchases 1,830,000 Expenses 360,000 Closing stock ...

      

The following information relates to Bizna Distributor Company for the year ended 31stDec 2009
shs
Gross profit 600,000
Opening stock 285,000
Sales 2,400,000
Purchases 1,830,000
Expenses 360,000
Closing stock 315,000
Fixed assets 400,000
Debtors 900,000
Bank 35,000
Current liabilities 438,000
Required calculate
i) Margin
ii) Rate of stock turnover
iii) Return on capital employed
iv) Current ratio

  

Answers


Kavungya
i. Margin =Gross profit/sales ×100
=600,000/ 2,400,000 ×100=25%
ii).Rate of stock turnover=cost of sales/average stock
=1,800,000/300,000vv=6times
iii).ROCE=Net profit/Capital employed × 100
=240,000/1,212,000 × 100
=19.8%
iv).Current ratio = Current Assets: Current liabilities
= 1,250,000 : 438,000
=2.85:1
Kavungya answered the question on September 26, 2019 at 12:43


Next: Find the velocity ratio of the following gear wheels.
Previous: State the type of insurance policy described in each case. a)Premium are paid over a stated period with the sum assured payable when insured dues b)Covers...

View More Business Studies Questions and Answers | Return to Questions Index


Exams With Marking Schemes

Related Questions