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Business and Corporation Law PDF

   

Added on  2022-08-14

4 Pages581 Words14 Views
Running Head: BUSINESS AND CORPORATION LAW
0
Fundamental of business
finance
2/10/2020
Student’s Name
Business and Corporation Law PDF_1
Fundamental of Business Finance
1
Question 1
Ratio Analysis
Formula Name Formula Calculation
Calculated
Ratio
Current ratio = Current Assets /Current
Liabailties 1775000/655000 2.71
Acid test ratio = Quick Assets/Current Liabailties 1125000/655000 1.72
Debt ratio = Total Debt/Total asstes 950000/2465000 0.39
Operating profit
margin = Operating Profit/Sales 1700000/9550000 18%
Operating return on assets = Operating income/assets 1700000/2465000 69%
Return on equity = Net Profit/Shareholder Equity 993000/860000 115%
Times interest earned
=
Earnings before interest and
tax/interest 1700000/45000 37.78
Average collection period = Average Debtors/cost of
sales * 365
725000/4866000*
365 54.38 days
Inventory turnover = Average inventory/cost of sales *
365
650000/4866000*
365 48.76 days
Fixed asset turnover
= Net Sales/Average Fixed assets 9550000/690000 13.84
Total asset turnover
= Sales/Total assets 9550000/2465000 3.87
Question 2
Market Value Ratios
Market Price Per
Share Price earning Ratio* Earning per share 11*42 462
Price/book ratio
Market Price Per Share/Book value per
share 462/17.40 26.55
Business and Corporation Law PDF_2

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