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

Assignment Help
Expertsmind Rated 4.9 / 5 based on 47215 reviews.
Review Site
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
Nord Company had $375,000 of current assets and $150,000 of current liabilities before borrowing $70,000 from the bank with a 3-month note payable. What effect did the borro
Amy Monroe wants to create a fund today that will enable her to withdraw $27,260 per year for 7 years, with the first withdrawal to take place 5 years from today. If the fund
The chart of accounts for the company is the same as that for Pioneer Advertising Agency plus the following: No. 154 Laundry Equipment, No. 610 Advertising Expense, No. 301
Prepare an adjusted trial balance as at 28 February 2013 and all journals should be prepared using Microsoft Excel, or similar spreadsheet software.
State the formula for computing the total budgeted costs for the Ironing Department. Prepare the flexible budget graph, showing total budgeted costs at 35,000 and 45,000 dir
In April, Steinhardt, Inc., sold 50 air conditioners for $200 each. Costs included material of $50 per unit, direct labor of $30 per unit, and factory overhead at 100 percen
The beginning inventory for Packaging consisted of 10,000 units that were 50% complete as to conversion costs and fully complete as to materials. During October, 50,000 unit
Sara Douglas purchased 30 shares of WXY stock for $210, and on October 29, 2013, she purchased 90 additional shares for $900. On November 28, 2013, she sold 48 shares, which