The accounts of XXX for year ended 31 December 2010 include the following information:
| Revenue | 600,000 |
| Gross Profit | 50,000 |
| Net Profit | 20,000 |
| Inventory | 50,000 |
| Trade Receivables | 90,000 |
| Cash | 50,000 |
| Trade Payables | 70,000 |
1. Calculate the Net Profit Percentage.
2. Calculate the Gross Profit Percentage.
3. Calculate the Receivables payment Period (All sales are on credit).
4. Calculate the Current Ratio.
5. Calculate the Quick Ratio. Suggested solutions:
Suggested Solutions
1. Net Profit Percentage =( Net Profit / Revenue ) X 100 %
= (20000 /600000) X100 %
=3.33 %.
2. Gross Profit Percentage =( Gross Profit / Revenue) X 100%
=(50000 /600000 ) X100 %
= 8.33 %.
3. Receivables Payment Period = (Receivables/ Revenue) X 365 days
= (90000 / 600000) X 365 days
= 54.8 days.
4. Current Ratio = (Trade Receivables + Inventory + Cash )/ Trade Payables
=(90000 + 50000 + 50000 ) / 70000
= 2.71
5. Quick Ratio= (Trade Receivables +Cash )/Trade Payables
=(90000 + 50000) / 70000
=2.
To do the same topic again in ACCA F3 INTERPRETATION OF FINANCIAL STATEMENTS