APTE 7207 Professional Business Management

Running head: FINANCIALS
FINANCIALS
Name of the Student
Name of the University
Author Note

FINANCIALS1
Table of Contents
Part 1: Financial Analysis................................................................................................................2
Answer to Question 1..................................................................................................................2
References and Bibliography...........................................................................................................7

FINANCIALS2
Part 1: Financial Analysis
Answer to Question 1
Part a
Ratios
RatioFormulaAnswer
Gross Profit Ratio % =Gross Profit/ Gross Income =3000/10000
=30%
Net Profit Ratio =Profit after tax/ Gross
Income
=1700/10000
=17%
Operating costs to Gross
income Ratio %
=Operating costs/ Gross
Income
=1300/10000
=13%
Direct Costs to Gross
income Ratio %
=Direct costs/ Gross Income =7000/10000
=70%
Return on Assets % =profit before interest and
tax/ Total assets
=1700/10000
=17%
Return on Equity =Profit after tax/ Total
shareholder`s Funds
=1200/6000
=12/60
=1/5
=1:5
Debt Ratio % =Total Liabilities/ Total
assets
=4000/10000
=40%
Interest Cover Times =Profit before Interest and
Tax/ Interest expense
=1700/100
=17 times
Current Ratio times =Current Assets / Current
Liabilities =1000/500
=2
Age of Debtor Days = (Debtors/Gross Income) *
365
=(400/10000) *365
=4/100*365
=14 days ( approximately)