Required:(a) You are required to calculate the following ratios:(i) Gross profit margin(ii) Operating profit margin(iii) Expenses to sales(iv) Return on Capital Employed(v) Asset turnover(vi) Non-current asset turnover(vii) Current Ratio(viii) Quick Ratio(ix) Inventory days(x) Receivables days(xi) Payable days(xii) Interest cover (b) In light of your calculations comment on the performance of the company over thelast two years. Marsh Company Income Statement for the year endsRevenueCost of SalesGross ProfitExpensesOperating ProfitInterest PayableProfit Before TaxTaxProfit After TaxMarsh Company Statement of Financial PositionNon-Current assetsCurrent assets:InventoryReceivablesCashPayablesNet current assetsLong term loanCapitalRetained earnings2019£ 000440(248)192(122)70(10)60(11)492019£00040545 65 17 7卫 457724501003502501003502020£ 000330(192)138(88)50(10)40(7)332020£00036128461084325241310031325063313

Gross profit margin ratio is the ratio which shows the percentage gross profit earned on the sales…

Answered: Revenue Cost of Sales Gross Profit…

Financial Management: Theory & Practice

16th Edition

ISBN:9781337909730

Author:Brigham

Publisher:Brigham

Chapter2: Financial Statements, Cash Flow,and Taxes

Section: Chapter Questions

Problem 15P: Use the following income statement of Elliott Game Theory Consulting to determine its net operating...

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Required:

(a) You are required to calculate the following ratios:
(i) Gross profit margin
(ii) Operating profit margin
(iii) Expenses to sales
(iv) Return on Capital Employed
(v) Asset turnover
(vi) Non-current asset turnover
(vii) Current Ratio
(viii) Quick Ratio
(ix) Inventory days
(x) Receivables days
(xi) Payable days
(xii) Interest cover

(b) In light of your calculations comment on the performance of the company over the
last two years.

Marsh Company Income Statement for the year ends
Revenue
Cost of Sales
Gross Profit
Expenses
Operating Profit
Interest Payable
Profit Before Tax
Tax
Profit After Tax
Marsh Company Statement of Financial Position
Non-Current assets
Current assets:
Inventory
Receivables
Cash
Payables
Net current assets
Long term loan
Capital
Retained earnings
2019
£ 000
440
(248)
192
(122)
70
(10)
60
(11)
49
2019
£000
405
45 65 17 7卫 45
7
72
450
100
350
250
100
350
2020
£ 000
330
(192)
138
(88)
50
(10)
40
(7)
33
2020
£000
361
28
46
10
84
32
52
413
100
313
250
63
313

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is there any chance these other calculcations could be done please?

thank you :)

Return on Capital Employed
(v) Asset turnover
(vi) Non-current asset turnover
(vii) Current Ratio
(viii) Quick Ratio
(ix) Inventory days
(x) Receivables days
(xi) Payable days
(xii) Interest cover

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