Answer Happy

Data table Income statement for the year ended 31 December: Last year This year £000 £000 Sales revenue 524 634 Cost of sales (333) (412) Gross profit 191 222 Operating expenses (110) (142) Operating profit 81 80 (13) (19) Interest payable Profit before taxation 68 61 Taxation (14) (12) Profit for the year 54 49 Print Done X
ed or Data table Statement of financial position as at 31 December: Last year This year £000 £000 110 154 Non-current assets Current assets Inventories 79 Trade receivables 97 8 Cash 184 Total assets 338 Equity Ordinary shares of £0.50 each 11 Capital reserves 34 Retained earnings Non-current liabilities Bank loan Current liabilities Trade payables Taxation Total equity and liabilities Print 67 80 10 157 267 11 34 100 145 53 64 5 69 267 Done 100 145 69 122 2 124 338 X
The following are the financial statements of LF Ltd, a retailer, for last year and this year: (Click here to view the income statement for the year ended 31 December.) (Click here to view the statement of financial position as at 31 December.) Required: Calculate the following accounting ratios for both years: return on capital employed current ratio • return on ordinary shareholders' funds • acid-test ratio gross profit margin inventories turnover period (based on year end figures) operating profit margin LF Ltd The ratios Last year This year Return on capital employed % % (Round your answer to one decimal point.) Return on ordinary shareholders' funds (Round your answer to one decimal point.) Gross profit margin (Round your answer to one decimal point.) Operating profit margin (Round your answer to one decimal point.) Current ratio (Round your answer to two decimal point.) Acid-test ratio (Round your answer to two decimal point.) Average inventories turnover period (Round your answer to nearest day.) (For consistency, year-end inventories figures have been used.) % % % days 0:0 1% 1% 1% days