View Full Version : Acid test ratio and capital employed ratio
Studentacc2014
Apr 19, 2014, 08:08 AM
45944
From the attachment can anyone advise on the below ratio's?
Many thanks in advance.
Calculate the acid test ratio?
The return on capital employed for 2012 was 11%
Calculate the ratio for 2013?
rehmanvohra
Apr 20, 2014, 01:40 AM
Acid test ratio:
(Current assets - Closing stock)/Current liabilities
144000-55000=89000/34000= 2.62:1
The return on capital employed for 2012 was 11%
Calculate the ratio for 2013?Net profit 117000
Capital employed 670000
17.46%
Studentacc2014
Apr 20, 2014, 03:50 AM
Acid test ratio:
(Current assets - Closing stock)/Current liabilities
144000-55000=89000/34000= 2.62:1
The return on capital employed for 2012 was 11%
Calculate the ratio for 2013?
Net profit 117000
Capital employed 670000
17.46%
Much appreciated rehmanvohra,
Could I ask you were you got the figure of 670,000 for the capital employed?
Also on another note, how would I explain 8% debentures for 2018/2019?
Thanks again for your help
rehmanvohra
Apr 21, 2014, 01:22 AM
Sorry, capital employed is 660000 and ratio is 17.72%.
.