Calculate asset turnover, Macroeconomics

The following information has been extracted from the recently published accounts of Noddy Plc:

                         Balance sheet as at 31st May

                                                                                                        2009         2008

                                                                                                        £000         £000

Fixed assets                                                                                   1,800        1,400

Current assets

Stock                                                                                               1,200        200

Debtors                                                                                            400          800

Cash                                                                                                100          100

                                                                                                        1,700        1,100

Creditors: amounts falling due within one year

Loans and other borrowing                                                            (200)        (500)

Other creditors                                                                                (300)        (800)

                                                                                                        (500)     (1,300)

Net current assets                                                                         1,200        (200)

Creditors: amounts falling due after one year

10% Debentures                                                                             (1,000)     (600)

                                                                                                        2,000        600

Capital and reserves

Ordinary share capital (50p shares)                                              1,200      500

Share premium                                                                                600          0

Reserves                                                                                          200        100

                                                                                                      2,000       600

Profit and loss accounts

                                                                                                     2009         2008

                                                                                                     £000         £000

Turnover                                                                                       2,000        1,000

Cost of sales                                                                               (1,300)      (700)

Gross profit                                                                                  700           300

Distribution costs                                                                        (260)        ( 90)

Administration expenses                                                            (100)       ( 60)

Operating profit                                                                           340        150

Interest                                                                                       (100)      (60)

Profit before taxation                                                                    240           90

Taxation                                                                                        (50)       (20)

Profit after taxation                                                                      190            70

Ordinary dividends                                                                       (90)        (50)

Retained profit for the year                                                          100           20

Balance brought forward                                                             100           80

Balance carried forward                                                               200         100

Share price                                                                                1.30        1.26

Industry P/E ratio                                                                        22           20 

Required:

(a)  Calculate the following ratios for both years:

(i)     Return on capital employed  

(ii)    Asset  turnover  

(iii)   Current ratio 

(iv)   Quick ratio 

(v)    Interest cover 

(vi)   Total gearing

(vii)  Earnings per share (EPS) 

(viii) Earnings yield 

(ix)   Dividend yield 

(x)    Dividend cover

(xi)   P/E ratio 

Posted Date: 2/22/2013 7:42:27 AM | Location : United States







Related Discussions:- Calculate asset turnover, Assignment Help, Ask Question on Calculate asset turnover, Get Answer, Expert's Help, Calculate asset turnover Discussions

Write discussion on Calculate asset turnover
Your posts are moderated
Related Questions
We divide all firms into 3 categories: FR includes all firms which acquire raw material (iron ore, farm products and so on), FH all those that produce semi-manufactured goods (stee

What is the difference between economic growth and economic development? Growth is only individual dimension of development. Economic development is a complicated multi-dimensio


Which of the following statements regarding the heckscher-ohlin model and Ricardian trade theory is TRUE? a. Both the Heckscher-Ohlin and Ricardian models are current, relevant,

impact of change in government expenditure and tax on fiscal policy

Suppose that Ana is buying only 2 goods: good 1 and 2. If the price of good 1 doubles and the price of good 2 drops by one third, then what happens with the budget constraint? (Ass

Effective Demand The concept of effective demand is the logical starting point of Keynes Theory of Employment. Effective demand manifests itself in the aggregate expenditure of

If demand increases and the supply increases also, then what will happen to the new equilibrium price and equilibrium quantity? Explain what is happening with the curves and how pr

Using the equilibrium in the labor market and the model IS-LM explain the different behavior described by the classic and keynessian schools when there is an increase in public spe

Since their inception, VAR models have been at the centre of many controversies associated with econometric modelling. The recurring criticism throughout history is due to the mode