Question

PLEASE HELP DUE SOON!!Using the financial data as appropriate, calculate the following ratios year ending –

(i) Net Profit margin
(ii) Current ratio
(iii) Gearing ratio
(iv) Return on capital employed
(v) Interest Cover ratio
(vi) Gross Profit Margin

Answer 1

i) 33.2%

ii) 3.7 times

iii) 7.8%

iv) 32%

v) 164 times

vi) 60.89%

Step-by-step explanation:

Net profit margin = Net profit / Sales

$31,130 / $93,700 = 33.2%

Current Ratio = Current Assets / Current Liabilities

$28,430 / $7,550 = 3.7 times

Gearing Ratio = Debt / Equity

$7,550 / $96,680 = 7.8%

Return on Capital Employed = Operating Profit / Capital Employed

$57,050 - $25,730 / $96,680 = 32%

Interest Cover = Operating profit / Interest Expanse

$31,320 / $190 = 164 times

Gross Profit Margin = Gross Profit / Sales

$57,050 / $93,700 = 60.89%