The following information is extracted from the Hardware Paint Limited’s financial statements. Average Inventory $250000 Average Net receivables
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Get it written →The following information is extracted from the Hardware Paint Limited’s financial statements.
Average Inventory $250000
Average Net receivables $450000
Net credit sales $900000
Non-current assets $800 000
Account payable $250 000
Bank Bill (Short term) $800 000
Long Term debt $200 000
Ordinary equity $800 000
Net operating income $401 332
Cost of goods sold $350000
Interest expense $44 000
Tax rate 30%
Required:
Calculate the following ratios for the current year:
Return on Equity [3 marks]
Return on Assets [3 marks]
Net Working Capital [3 marks]
Debt to Equity [3 marks]
Average Collection Period [3 marks]
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