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
The following Table summarizes the profits of two firms as a function of their capacity investments levels (you can also interpret these levels as the quantities they produce):

Classify each of the following as employed, unemployed, or not in the labor force. a. Beth is not working; she applied for a job at Wal-Mart last week and is awaiting the result

Singer suggests that although the right to sell blood does not threaten the formal right to give blood, it is incompatible with "the right to give blood, which cannot be bought, wh

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

Discuss the three major economic indicators and how they are indicative of our current economic climate.

Explain the adjustment to the new equilibrium price from an increase in supply.

Q. Define the Labor Market? A significant macroeconomic variable is the total amount of labor which is used in a certain time period. Amount of labor and amount of capital are

Q. When Ochratoxin molds can occur? Ochratoxin A is a phenylalanyl derivative of a substituted isocoumarin produced by Penicillium verrucosum in temperate climate and by severa

Q. Describe classical model of macroeconomics? Though we use the term ‘the classical model' as if there were just one classical model, this isn't quite true. For all the models

Commercial Banks: Balance Sheet The accompaning table gives the balance sheet of a commercial bank in a simplified format. The balance sheet contains particulars of a Bank's cu