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Tutorial Acc 14

The document contains questions and calculations related to financial ratios for furniture businesses. Ratios calculated include gross profit margin, net profit margin, current ratio, quick ratio, inventory turnover, receivables turnover, and payables turnover.

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Shu Qing
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16 views

Tutorial Acc 14

The document contains questions and calculations related to financial ratios for furniture businesses. Ratios calculated include gross profit margin, net profit margin, current ratio, quick ratio, inventory turnover, receivables turnover, and payables turnover.

Uploaded by

Shu Qing
Copyright
© © All Rights Reserved
Available Formats
Download as XLSX, PDF, TXT or read online on Scribd
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Question 1

ai) cost of sales=(Opening Inventories+Purchases)-Closing Inventories


262,500=(17,500+P)-26,250
=RM271,250 ai)

ii) Gross Profit= Sales - Cost of sales


=RM(437,500-262,500) ii)
=RM175,000

iii) Net Profit= Other Income - expenses iii)

175,000 + 3,750 -
61,250
= 117,500

iv)

bi) Gross Margin= RM 175,000/RM 437,500 X 100%


= 40% v)

ii)Net Profit Margin= RM117,500/RM 437,500 X 100


=26.86% vi)

iii) Current Ratio= RM(8,750+31,500+26,250+39,375)/RM 47,250


= 2.24 times vii)

iv) Inventories turnover days= [RM(17,500+26,250)/2]/ RM262,500 X 365


=30.42 days

v) Trade Receivables turnover days= RM39,375/ RM437,500 X 365


=32.85 days
Question 2

Ratio Home Furniture


Gross Profit as a percentage of sales =RM(365,000/700,000) X 100
=Gross Profit/ Sales X 100 =52.14%

Net profit as a percentage of sales =RM(700,000-335,000)/RM700,000


=(Net Sales- COGS)/ Net Sales =0.52%

Current Ratio =RM275,000/RM174,000

=CA/CL =1.58 times/ 1.58:1

Quick Ratio =RM(275,000-115,000)/ RM174,000


=(CA-Closing Inventories)/CL =0.92 times/ 0.92:1

Inventories turnover times =RM335,000/ [RM(150,000+115,000)/2]


=COGS/ Average inventories =2.53 times/ 2.53:1

Trade Receivables turnover days =RM(135,000/700,000) X 365


=TR/ Sales X 365 =70.39 days

TP turnover days =RM(174,000/300,000) X 365


=TP/ Purchases X 365 =211.7 days
Question 3

Comfort Furnitures Ratio


=RM(525,000/950,000) X 100 ai) Gross Profit as a percentage of sales
=55.26% =Gross Profit/ Sales X 100

=RM(950,000-425,000)/ RM950,000 ii) Net profit as a percentage of sales


=0.55% =Net profit before tax/ Sales X 100

=RM257,500/RM101,000 iii) Inventories turnover times

=2.55 times/ 2.55:1 =COGS/ Average inventories

=RM(257,500-95,000)/ RM101,000 iv) Trade Receivables turnover days


=1.61 times/ 1.61:1 =TR/ Sales X 365

=RM425,000/ [RM(100,000+95,000)/2] v) TP turnover days


=4.36 times/ 4.36:1 =TP/ Purchases X 365

=RM(150,000/950,000) X 365 vi) Current Ratio


=57.63 days =CA/CL

=RM(101,000/420,000) X 365 vii) Quick Ratio


=87.77 days =(CA-Closing Inventories)/CL
Year 1 Year 2
=RM(50,000/200,000) X 100 =RM(70,000/280,000) X 100
=25% =25%

=RM(12,000/200,000) X 100 =RM(20,000/280,000) X 100


=6% =7.14%

=RM150,000[(50,000+20,000)/2] =210,000[20,000+30,000)/2]

=4.3 times =8.4 times

=RM(25,000/200,000) X 365 =RM(28,000/280,000) X 365


=45.63 days =36.5 days

(15,000/120,000) X 365
=46 days

=RM45,000/RM25,000 =RM63,000/RM12,000
=1.8 times/ 1.8:1 =5.25 times/ 5.25:1

=RM(45,000-20,000)/RM25,000 =RM(63,000-30,000)/RM12,0000
=1 times/ 1:1 =2.75 times/ 2.75:1

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