Calculate the ratios - gross profit to sales
Course:- Cost Accounting
Reference No.:- EM13298360

Assignment Help
Assignment Help >> Cost Accounting

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


(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.

Put your comment

Ask Question & Get Answers from Experts
Browse some more (Cost Accounting) Materials
How much is your service? I need help with an accounting problem: Prepare an income statement, using the single-step form, and a statement of owner's equity using the data (
These shares were classified as a long-term available for sale investment. It sold the shares on 13th December for $42,100. Organize the journal entry to record this sale.
Compute the cost per unit for the service department costs allocated to the production departments. Did the company meet management's standards of keeping service department
Wogle Manufacturing Company uses a standard cost system for the applies overhead based on machine hours.The following information is available for September: Standard: Machine
How does goodwill arise and come to be reported on the balance sheet and how is the amount calculated? What does goodwill represent? Will we tend to see a higher or lower amo
Calculate the total direct labor cost in Department A. Calculate the direct labor wage rate in Department B, 2. Compute the rate to be used in each department for applying ove
Prepare an effective-interest amortization table for the bond discount through the first two interest payments. Use exhibit 11A-1 as a guide, and round amounts to the neares
Determine the balance in the Retained Earnings account as of January 31, 2010 and comment on whether retained earnings is an element of financial statements or an account.