User Account

All Pages

Which business do you think engages in personal service

Assignment Help Accounting Basics
Reference no: EM132545966

Question - Mumba and Chikosi are both engaged in retailing as soles traders, but seem to take a different approach to trading. The following information has been calculated in respect of both businesses.

Ratio Mumba Chikosi

Current ratio 2:1 1.5:1

Acid test ratio 1.7:1 0.7:1

Return on capital employed 20% 12%

Trade receivables settlement period 63 days 21 days

Trade payables settlement period 58 days 45 days

Gross profit margin 40% 15%

Operating profit margin 10% 10%

Inventories turnover period 52 days 25 days

Required -

(a) Describe what this information indicates about the differences in approach between the two businesses.

(b) If one of them prides itself on personal service, and one of them on competitive prices. Which business do you think engages in personal service and which one engages on competitive prices? Give reasons for your answer?

Reference no: EM132545966

Questions Cloud

Which offer is preferable for donna and keith : If interest is 6.67% annually, which offer is preferable for Donna and Keith?
What between customer perception and customer service : What examination of the five needs of every customer (highlighted in the exploration) - why is each need important and how can businesses meet this need?
Describe the plan for searching the literature : Describe the plan for searching the literature (in future tense). Topics and specific search words to be used and how they will be combined in the search.
Make first payment one year from today : Plan Y is a 14-year, $25,000 annual annuity. Both plans will make their first payment one year from today.
Which business do you think engages in personal service : Which business do you think engages in personal service and which one engages on competitive prices? Give reasons for your answer
Why oreo cookies are co-branded with different brands : Describe how, and explain why Oreo cookies are co-branded with different brands from their brand portfolio across the globe according
What is the present value of the cash flows : What is the present value of the cash flows from your lottery winnings?
Describe how you went about collecting the information : Use relevant charts and graphs to support the information you collected. Identify the sources of your information and describe how you went about collecting.
Percent prepayment penalty : If the bank charges her a 1 percent prepayment penalty based on the loan balance, how much must she pay the bank on November 1, 2015?

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +91-977-207-8620

Phone: +91-977-207-8620

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd