Profitability Ratios: 1. Following is the profit and loss account of a limited company 10,000 Sales 50,000 Closing Stock 50,000 110,000 Opening Stock Purchases 90,000 20,000 Gross profit c/d 110,000 Gross profit b/d Administration Expenses Selling and Distribution Expenses 50,000 6,000 4,000 Net Profit 40,000 50,000 50,000 Calculate: Gross profit ratio, Net profit ratio 2. From the following data, calculate (a) Gross profit ratio (b) Net profit ratio. RO 200,000 RO 300,000 RO 60,000 Sales Cost of sales Net profit Sales Returns RO 20,000 3. From the following data, calculate (a) Gross profit ratio (b) Net profit ratio. Sales RO 25,000 RO 320,000 RO 70,000 Sales returns Opening stock Closing stock RO 25,000

Profitability Ratios: 1. Following is the profit and loss account of a limited company 10,000 Sales 50,000 Closing Stock 50,000 110,000 Opening Stock Purchases 90,000 20,000 Gross profit c/d 110,000 Gross profit b/d Administration Expenses Selling and Distribution Expenses 50,000 6,000 4,000 Net Profit 40,000 50,000 50,000 Calculate: Gross profit ratio, Net profit ratio 2. From the following data, calculate (a) Gross profit ratio (b) Net profit ratio. RO 200,000 RO 300,000 RO 60,000 Sales Cost of sales Net profit Sales Returns RO 20,000 3. From the following data, calculate (a) Gross profit ratio (b) Net profit ratio. Sales RO 25,000 RO 320,000 RO 70,000 Sales returns Opening stock Closing stock RO 25,000

Century 21 Accounting General Journal

11th Edition

ISBN:9781337680059

Author:Gilbertson

Publisher:Gilbertson

Chapter17: Financial Statement Analysis

Section: Chapter Questions

Problem 4AP

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Please assist by providing the correct answer for 1.1,1.2 and 1.3 1.1 Which one of the following would reduce the cash balances of a business and not reduce the profit for the year? Select one: a. Interest paid b. Distribution costs c. Remuneration to directors d. Dividends paid 1.2 Goods costing R180 000 sent out to consignee to show a profit of 20% on Invoice Price. Invoice price of the goods will be______. Select one: a. R216 000 b. R225 000 c. R210 000 d. R281 250 1.3 Goods sent on consignment Invoice value R200 000, at cost + 331/3 %. 1/5th of the goods were lost in transit. Insurance claim received R10 000. The amount of abnormal loss to be transferred to General P/L is___. Select one: a. R30 000 b. R20 000 c. R35 000 d. R25 000
Some selected financial statement items belonging to MNO Company are given in the table below. According to this information, which of the following is Return on Equity (ROE)? Inventory 25000 Current Assets 50,000 Current Liabilities 30,000 Non-current Assets 80,000 Net Profit 12,240 owner Equity 68,000 Select one: a. The correct answer not available b. 0.81 c. 0.18 d. 0.359
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Some selected financial statement items belonging to MNO Company are given in the table below. According to this information, which of the following is Return on Assets (ROA)? Inventory 12,500Current Assets 50,000Current Liabilities 40,000Non-current Assets 90,000Net Profit 12,000Shareholders' Equity 65,000 Select one:a. 18.5%b. 12.2%c. 9.23%d. 13.3%