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    Studentacc2014's Avatar
    Studentacc2014 Posts: 2, Reputation: 1
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    #1

    Apr 19, 2014, 08:08 AM
    Acid test ratio and capital employed ratio
    Calculate the acid test ratio 2014.doc

    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's Avatar
    rehmanvohra Posts: 739, Reputation: 27
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    #2

    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's Avatar
    Studentacc2014 Posts: 2, Reputation: 1
    New Member
    		  
    #3

    Apr 20, 2014, 03:50 AM
    Quote Originally Posted by rehmanvohra View Post
    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's Avatar
    rehmanvohra Posts: 739, Reputation: 27
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    #4

    Apr 21, 2014, 01:22 AM
    Sorry, capital employed is 660000 and ratio is 17.72%.

    .
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