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Question B2

By June 25, 2021No Comments

Question B2 Selected data for two similar shops in the garment industry are as follows. W-One CashH-200085,000250,000 Debtors137,000212,000 Stocks450,000460,000 Equipment(net)485,000627,000 Current liabilities250,000320,000 Long-term liabilities400,000500,000 Capital and retained earnings507,000729,000 Annual sales1,000001,500000 Cast of goods sold300,000600,000 Salary150,000200,00 Other expenses250000175,000 REQUIRED:5/9目目 REQUIRED: a)Calculate each shop’s net profit ratio gross profit ratio, current ratio, quick ratio, rethirn on assets, debtors ratio, stock turnover ratio, and gearing ratio. (14 marks) b)Which of the two shops, as judged by the preceding information, would you consider as being in a better financial position and why? (6 marks) (Total 20 marks)5/9□0171.



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