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
Prepare a statement of financial position for ABC ltd as at 30 June 2012 to comply with AASB 101 and prepare a statement of changes in equity for ABC ltd for the year ended 30
Comparative financial statements for Heritage Antiquing Services for the fiscal year ending December 31 appear on the following page. The company did not issue any new commo
The journal entry to record the incurrence of direct labor costs in November would include the following for Work in Process - total cost of producing and selling the product
yellow zoloft bars cheap zoloft without doctor rx zoloft 100 mg overnight zoloft pill description zoloft cash delivery cod zoloft 2 xr mg bars how to buy zoloft no rx cheap
Bauer Manufacturing uses departmental cost driver rates to allocate manufacturing overhead costs to products. Manufacturing overhead costs are allocated on the basis of mach
Calculating EAC. You are evaluating two different silicon wafer milling machines. The Techron 1 costs $240,000, has a three-year life, and has pretax operating costs of $63,
Illustration purposes, assume that the present worth of the total system cost is $20 million with financing sources and costs as follows. Compare the WACC for the Hong Kong (
Journalize all entries required on the above dates, including entries to update depreciation where applicable, on assets disposed of. Tongun Ltd uses straight-line depreciat