[gomathym]

QUESTION 1

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


REQUIRED:

(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

[morgaine300]

Please see the guidelines on posting homework problems:
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At least show some attempt at doing the problem, or ask specifically what you don't understand. It would also be useful to include the equations you've been given in your book or notes, as there can be slight variations on these.