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he following is an extract from the financial statements of Lusaka (Pty) Ltd for the year ended 28 February 2024: 2024 R’000Cost of sales42 323Gross profit34 155Operating expenses17 820Finance costs1 617Income tax3 267Capital and reserves73 095Long-term (interest-bearing) borrowings7 425Bank balance (overdraft)743Trade payables9 445Non-current assets75 059Trade receivables10 303Inventory5 346 Required:Complete the table below to calculate the following ratios and choose the nearest correct answer from the list of options provided:Ratio2024Return on assets (ROA)Blank 1Debtors’ collection periodBlank 2Days' sales inventory heldBlank 3Operating profit marginBlank 4Quick ratioBlank 5Gross profit marginBlank 6Debt ratioBlank 7

Question

he following is an extract from the financial statements of Lusaka (Pty) Ltd for the year ended 28 February 2024: 2024 R’000Cost of sales42 323Gross profit34 155Operating expenses17 820Finance costs1 617Income tax3 267Capital and reserves73 095Long-term (interest-bearing) borrowings7 425Bank balance (overdraft)743Trade payables9 445Non-current assets75 059Trade receivables10 303Inventory5 346 Required:Complete the table below to calculate the following ratios and choose the nearest correct answer from the list of options provided:Ratio2024Return on assets (ROA)Blank 1Debtors’ collection periodBlank 2Days' sales inventory heldBlank 3Operating profit marginBlank 4Quick ratioBlank 5Gross profit marginBlank 6Debt ratioBlank 7

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Solution 1

Sure, let's calculate the ratios one by one:

  1. Return on Assets (ROA): This is calculated as Net Income / Total Assets. However, the net income is not provided in the question.

  2. Debtors’ collection period: This is calculated as (Trade Receivables / Sales) x 365. However, the sales figure is not provided in the question.

  3. Days' sales inventory held: This is calculated as (Inventory / Cost of Sales) x 365. For this, we have the figures: (5,346 / 42,323) x 365 = 46.1 days.

  4. Operating profit margin: This is calculated as Operating Profit / Sales. However, the sales figure is not provided in the question.

  5. Quick ratio: This is calculated as (Current Assets - Inventory) / Current Liabilities. However, the current assets and current liabilities figures are not provided in the question.

  6. Gross profit margin: This is calculated as Gross Profit / Sales. However, the sales figure is not provided in the question.

  7. Debt ratio: This is calculated as Total Debt / Total Assets. However, the total debt and total assets figures are not provided in the question.

Without the necessary figures, it's impossible to calculate these ratios. Please provide the missing figures.

This problem has been solved

Solution 2

Sure, let's calculate the ratios one by one:

  1. Return on Assets (ROA): This is calculated as Net Income / Total Assets. However, the net income is not provided in the question.

  2. Debtors’ Collection Period: This is calculated as (Trade Receivables / Sales) x 365. However, the sales are not provided in the question.

  3. Days' Sales Inventory Held: This is calculated as (Inventory / Cost of Sales) x 365. For this, we have all the numbers. So, (5,346 / 42,323) x 365 = 46.1 days.

  4. Operating Profit Margin: This is calculated as Operating Profit / Sales. However, both the operating profit and sales are not provided in the question.

  5. Quick Ratio: This is calculated as (Current Assets - Inventory) / Current Liabilities. However, the current assets and current liabilities are not provided in the question.

  6. Gross Profit Margin: This is calculated as Gross Profit / Sales. However, the sales are not provided in the question.

  7. Debt Ratio: This is calculated as Total Debt / Total Assets. However, the total debt is not provided in the question.

Please provide the missing information so that we can calculate all the ratios.

This problem has been solved

Similar Questions

The following is an extract from the financial statements of Lusaka (Pty) Ltd for the year ended 28 February 2024: 2024 R’000 Cost of sales 42 323 Gross profit 34 155 Operating expenses 17 820 Finance costs 1 617 Income tax 3 267 Capital and reserves 73 095 Long-term (interest-bearing) borrowings 7 425 Bank balance (overdraft) 743 Trade payables 9 445 Non-current assets 75 059 Trade receivables 10 303 Inventory 5 346 Required: Complete the table below to calculate the following ratios and choose the nearest correct answer from the list of options provided: Ratio 2024 Return on assets (ROA) Blank 1 Debtors’ collection period Blank 2 Days' sales inventory held Blank 3 Operating profit margin Blank 4 Quick ratio Blank 5 Gross profit margin Blank 6 Debt ratio Blank 7

Tshiawelo Pty Limited has provided you with the following extract from the financial records for the financial year ended 31 December 2023 RCost of sales2 400 000Gross profit40%Operating expenses800 000Interest expense200 000Income tax expense30%Inventories 800 000Issued capital2 000 000Trade payables500 000Trade receivables600 000Cash and other equivalents200 000Short-term borrowings500 000Long-term borrowings2 000 000Property Plant and equipment1 000 000Required:Calculate the following ratios by choosing the correct answer from the options provided:Revenue from sales Blank 1 Net profit margin Blank 2Current ratio Blank 3Quick ratio Blank 4Debtors’ collection period Blank 5 Return on assets (ROA) Blank 6Days’ sales inventory held Blank 7Times interest earned ratio Blank 8

Ngwenya (Pty) Ltd had the following expenses during the 2024 year of assessment:Bad debts from customers = R74 000Bad debts from a loan to a supplier = R98 000Calculate the deduction available for tax purposes to Ngwenya (Pty) Ltd for the 2024 year of assessment ending 29 February 2024.

Extractions of the transactions to the accounting equation in the month of January 2019 of Parakumcompany Ltd have been given for you.Following transactions have been occured06. Owner has used a stock Rs. 10,000 and cash Rs. 3000 for his personnel usage.07. Investment income received is Rs. 1200008. PPE should be depreciated 12% per annum09. Paid bank loan installment is Rs. 25000 and included interest for above is Rs. 500010. Received Rs 27000 from debtors under a discount of 10%11. Set off a debtor worth of Rs. 53000 with a creditor of Rs.50,000Required01. Write the transaction could be occurred from the 01-0502. Show the impact of transactions 6 -11 with in the accounting equation and state whether eachvalue increase (+) decrease (-) and in front of the value. (use following format.)TransactionNoncurrentassetsStock Tradereceivables CashEquity TradePayablesOtherPayablesCapital RetainedEarnings1.2.........TransactionNoncurrentassetsStock Tradereceivables CashEquity TradepayablesOtherpayablesCapital Retainedprofit01/01Balance 500 80 60 360 725 - 155 12001 +200 -110 +9002 -36 +4 -4003 -100 +150 +5004 +30 -3005 +20 -30 -10

You've been provided with the following Trial BalanceCalculate TOTAL ASSETSCash 25,450Accounts Receivable 25,500Inventory 85,000Prepaid Expenses 4,950Motor vehicle 68,000Equipment 155,000Accounts Payable 35,000Unearned Revenue 8,000Wages Payable 15,000Bank Loan 50,000Share Capital 235,000Retained Earnings 10,000Dividends -5,000Revenue 53,650Cost of Sales -12,450Wages Expense -15,000Interest expense -2,500Marketing expense -2,800Insurance expense -5,000

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