Page 423 - F2 - MA Integrated Workbook STUDENT 2018-19
P. 423
Performance measurement techniques
Test your understanding 4
Extracts from a company’s accounts show the following:
$000 $000
Non-Current assets 30,000
Current assets
Inventory 22,000
Trade receivables 12,506 Additional Notes $000
Cash 5,006 Revenue 64,323
Profit before interest and
39,512 27,657
taxation
Total assets 69,512
Equity
Share capital 100
Revaluation reserve 12,000
Retained earnings 26,412
Non-current
liabilities
Loans 16,000
Current liabilities
Trade payables 15,000
Total equity and 69,512
liabilities
What is the gearing ratio (total debt/equity) of the company?
A 44.3%
B 41.5%
C 60.6%
D 57.1%
415
