ABSTRACT
Balance sheet at 30 September 2000 £’000
Tangible fixed assets Land and buildings 180 Plant and equipment 220
400 Current assets
Stocks 300 Debtors 200 Cash 50
550 Less: Creditors due within one year 350
200 Total assets less current liabilities 600 Less: Creditors due after one year 250
Capital and reserves Called up 50p share capital 200 Profit and loss account 150
2.2 James Smith Limited (A) Solution
PROFITABILITY (a) Return on equity Profit after tax Shareholders’ funds
£’000 140 350 40.0%
(b) Tax ratio TaxProfit before tax 60 200 30.0%
(c) Return on net assets =
(d) Profit margin =
ASSET TURNOVER (e) Net asset turnover =
(f) Fixed asset turnover =
(g) Stock turnover =
(h) Debtor turnover =
Profit before interest and tax Capital employed
Profit before interest and tax Sales
Sales Net assets
Sales Fixed assets Cost of sales
Stock Sales
Debtors
220 600 220 1 500
1 500 600 1500 400 830 300 1 500 200
= 36.7%
= 14.7%
= 2.50 times
= 3.75 times
= 2.77 times
= 7.50 times
No answers are published for the following two problems.
