The following financial statements are for Rupert's Appliances,a sole trader,for the years ending 31 March 20X3,20X4 and 20X5.
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a Calculate the following ratios for the 20X5 year only.Show your calculations.
i Gross profit %,Net profit %,Return on equity %
ii Inventory turnover (times per year),Inventory turnover (days)
iii Accounts receivable turnover (times per year),Accounts receivable turnover (days)
iv Current ratio,Liquidity ratio,Equity ratio %.
b Comment on the ratios calculated above,and the financial statement results for Rupert's Appliances during the years 20X3-20X5 inclusive,in the following areas:
• profitability
• managerial performance
• financial stability.
c Recommend to Rupert what you consider to be the 6 most important things to do to correct his financial position and performance.

Question

The following financial statements are for Rupert's Appliances,a sole trader,for the years ending 31 March 20X3,20X4 and 20X5.
  continues over page
  
a Calculate the following ratios for the 20X5 year only.Show your calculations.
i Gross profit %,Net profit %,Return on equity %
ii Inventory turnover (times per year),Inventory turnover (days)
iii Accounts receivable turnover (times per year),Accounts receivable turnover (days)
iv Current ratio,Liquidity ratio,Equity ratio %.
b Comment on the ratios calculated above,and the financial statement results for Rupert's Appliances during the years 20X3-20X5 inclusive,in the following areas:
• profitability
• managerial performance
• financial stability.
c Recommend to Rupert what you consider to be the 6 most important things to do to correct his financial position and performance.

Quizplus · Accepted Answer

The Answer of The following financial statements are for Rupert's Appliances,a sole trader,for the years ending 31 March 20X3,20X4 and 20X5.
  continues over page
  
a Calculate the following ratios for the 20X5 year only.Show your calculations.
i Gross profit %,Net profit %,Return on equity %
ii Inventory turnover (times per year),Inventory turnover (days)
iii Accounts receivable turnover (times per year),Accounts receivable turnover (days)
iv Current ratio,Liquidity ratio,Equity ratio %.
b Comment on the ratios calculated above,and the financial statement results for Rupert's Appliances during the years 20X3-20X5 inclusive,in the following areas:
• profitability
• managerial performance
• financial stability.
c Recommend to Rupert what you consider to be the 6 most important things to do to correct his financial position and performance.

The Following Financial Statements Are for Rupert's Appliances,a Sole Trader,for