a) Compute and interpret the following ratios of "MAYE HOT" Company Limited for each of the years. fuale last i. Profit Margin ii. Return on Equity iii. Return on Capital Employed

Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter5: The Income Statement And The Statement Of Cash Flows
Section: Chapter Questions
Problem 2MC: The following information is available for Cooke Company for the current year: The gross margin is...
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Other cost
Profit before Interest and Tax
Interest
Tax
Profit after Interest and Tax
Dividends Payable
Shareholders' Funds
Long Term Debt
Number of Shares in Issue
P/E Ratio
Industry P/E ratio
15,489
17,749
4,553
7,347
11,849
7,800
42,900
17,000
17,000
14.0
15.2
Required:
a) Compute and interpret the following ratios of "MAYE HOT" Company Limited for
each of the years.
fiawns Imat
12,160
16,506
4,863
6,726
10,917
6,100
38,087
20,500
17,000
13.0
15.0
i. Profit Margin
ii. Return on Equity
iii.
iv.
v. Debt-to-Equity Ratio
b) Comment on the performance of the firm using the previous year as the basis for your
comment.
Return on Capital Employed
Earnings Per Share (EPS)
c) List four qualitative issues ratio analysis may not tell us.
d) List two limitations of the ratio analysis.
Transcribed Image Text:Other cost Profit before Interest and Tax Interest Tax Profit after Interest and Tax Dividends Payable Shareholders' Funds Long Term Debt Number of Shares in Issue P/E Ratio Industry P/E ratio 15,489 17,749 4,553 7,347 11,849 7,800 42,900 17,000 17,000 14.0 15.2 Required: a) Compute and interpret the following ratios of "MAYE HOT" Company Limited for each of the years. fiawns Imat 12,160 16,506 4,863 6,726 10,917 6,100 38,087 20,500 17,000 13.0 15.0 i. Profit Margin ii. Return on Equity iii. iv. v. Debt-to-Equity Ratio b) Comment on the performance of the firm using the previous year as the basis for your comment. Return on Capital Employed Earnings Per Share (EPS) c) List four qualitative issues ratio analysis may not tell us. d) List two limitations of the ratio analysis.
The following information is a summary of the financial information for "MAYE HOT"
Company Limited, producers of Guinea Fowls.
Revenue
Cost of Sales
Salaries and Wages
Current Year
77,521
31,256
23.027
Previous Year
71,000
28,772
22 562
Transcribed Image Text:The following information is a summary of the financial information for "MAYE HOT" Company Limited, producers of Guinea Fowls. Revenue Cost of Sales Salaries and Wages Current Year 77,521 31,256 23.027 Previous Year 71,000 28,772 22 562
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