Question

Gross Profit ratio 20%
Debtors turnover 6 times
Fixed assets to net worth 0.80
Reserves to capital 0.50
Current ratio 2.50
Liquid ratio 1.50
Working capital OMR 300,000
Stock turnover ratio 6 times
Show detailed working notes for all the values you calculated

Answer 1

Answer:

I'm not sure how to calculate this sum but at least I'm trying since you are not mention specifically which to calculate so.

Explanation:

Gross profit = 20 /100 x

Debtors Turnover Ratio = credit sales / average debtors

CURRENT RATIO = CURRENT ASSETS :CURRENT LIABILITY

-> 2.5 : 1 = CA : CL

-> CA = 2.5 CL

LIQUID RATIO = LIQUID ASSETS :CURRENT LIABILITY

-> 1.5 : 1 = LA : CL

-> LA = 1.5 CL

WORKING CAPITAL = CA - CL

-> 300000 = 2.5 CL - CL

-> 300000 = 1.5 CL

-> CL = 300000 /1.5

-> CL = 200000

CA = 2.5CL

= 2.5 X 200000

= 500000

STOCK TURNOVER RATIO = COST OF GOODS SOLD / AVERAGE STOCK

-> 6 = (sales - gross profit) / avg stock

Answer 2

Debtors turnover 6 times
Fixed assets to net worth 0.80
Reserves to capital 0.50
Current ratio 2.50
Liquid ratio 1.50
Working capital OMR 300,000
Stock turnover ratio 6 times
Show detailed working notes for all the values you calculated