The trading account of Calypso for the year ended 30 June 20X0 is set out below: 430,000 Sales Opening inventories Purchases 50,000 312,500 362,500 Closing inventories (38,000) Cost of sales (324,500) Gross profit 105,500 The following amounts have been extracted from the company's statement of financial position at 30 June 20X0. Trade receivables 60,000 4,000 Prepayments Cash in hand 6,000 8,000 Bank overdraft Trade payables Accruals 40,000 3,000 5,000 Declared dividends Calculate the inventories days (using average inventories) and the current ratio for Calypso Ltd for the period. Inventory days Current ratio A 33 days 1.25:1 B 49 days 1.25:1 49 days 1.93:1 33 days 1.93:1
The trading account of Calypso for the year ended 30 June 20X0 is set out below: 430,000 Sales Opening inventories Purchases 50,000 312,500 362,500 Closing inventories (38,000) Cost of sales (324,500) Gross profit 105,500 The following amounts have been extracted from the company's statement of financial position at 30 June 20X0. Trade receivables 60,000 4,000 Prepayments Cash in hand 6,000 8,000 Bank overdraft Trade payables Accruals 40,000 3,000 5,000 Declared dividends Calculate the inventories days (using average inventories) and the current ratio for Calypso Ltd for the period. Inventory days Current ratio A 33 days 1.25:1 B 49 days 1.25:1 49 days 1.93:1 33 days 1.93:1
Managerial Accounting: The Cornerstone of Business Decision-Making
7th Edition
ISBN:9781337115773
Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Chapter15: Financial Statement Analysis
Section: Chapter Questions
Problem 46E
Related questions
Question
100%
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.Recommended textbooks for you
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Individual Income Taxes
Accounting
ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT
Managerial Accounting: The Cornerstone of Busines…
Accounting
ISBN:
9781337115773
Author:
Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger
Publisher:
Cengage Learning
Individual Income Taxes
Accounting
ISBN:
9780357109731
Author:
Hoffman
Publisher:
CENGAGE LEARNING - CONSIGNMENT
Intermediate Accounting: Reporting And Analysis
Accounting
ISBN:
9781337788281
Author:
James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:
Cengage Learning
Financial And Managerial Accounting
Accounting
ISBN:
9781337902663
Author:
WARREN, Carl S.
Publisher:
Cengage Learning,