The following are the financial statements of PD Ltd, a retailer, for last year and this year: (Click here to view the i

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The Following Are The Financial Statements Of Pd Ltd A Retailer For Last Year And This Year Click Here To View The I 1 (85.04 KiB) Viewed 9 times

The following are the financial statements of PD 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 acid-test ratio return on ordinary shareholders' funds gross profit margin • inventories turnover period (based on year end figures) operating profit margin Data table PD 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 % % days Statement of financial position as at 31 December: Last year £000 115 Non-current assets Current assets Inventories 69 Trade receivables 78 12 Cash 159 Total assets 274 Equity Ordinary shares of £0.50 each 8 Capital reserves Retained earnings Non-current liabilities Bank loan Current liabilities Trade payables Taxation Total equity and liabilities 37 96 141 56 70 7 77 274 This year £000 158 82 99 4 185 343 8 37 96 141 74 128 0 128 343 - X Data table Income statement for the year ended 31 December: Last year This year £000 522 £000 630 Sales revenue (342) Cost of sales (435) Gross profit 180 195 (103) (137) Operating expenses Operating profit 77 58 (15) (22) Interest payable Profit before taxation 62 36 (12) Taxation (7) Profit for the year 50 29 Print Done