Calculate the ratios - gross profit to sales

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Reference no: EM13298360

The following information has been extracted from the financial statements of ABS Sdn Bhd for the last 3 years: Year end 31 December 2006 2007 2008 RM000 RM000 RM000 Sales 300 400 500 Cost of goods sold 200 260 300 Net profit 30 50 80 Non Current Assets - cost 150 200 250 - accumulated depreciation 30 50 65 Inventories 10 18 30 Trade Receivables 21 25 35 Trade Payables 12 19 24 Bank 5 - - Bank overdraft - 6 18 Capital and reserves 144 168 208

REQUIRED:

(a) Calculate the following ratios for each of the 3 years:

(i) Gross profit to sales (expressed as a %)

(ii) Net profit to sales (expressed as a %)

(iii) Return on capital employed (expressed as a %)

(iv) Current (in the form X:1 where X is the current assets)

(v) Trade receivable collection period (expressed in days)

(vi) Inventory turnover (expressed in number of times)

Note: Calculations should be correct to 1 decimal place

(b) Make brief comments on ABS Sdn. Bhd progress.

Reference no: EM13298360

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