Page 447 - F2 - MA Integrated Workbook STUDENT 2018-19
P. 447
Performance measurement techniques
Test your understanding 2
(a) Current ratio 1,585/780 2.03 times
(b) Acid test/quick ratio (1,585-825)/780 0.97 times
Test your understanding 3
(a) Asset turnover = Revenue ÷ capital employed
= 3,000/970 = 3.09
(b) Receivable days = receivables ÷ credit sales × 365
= 200/3,000 × 365 = 24.3 days
(c) Payable days = payables ÷ credit purchased × 365
= 280/1,600 × 365 = 63.9 days
(d) Inventory days = inventory ÷ cost of sales × 365
= 300/1,600 × 365 = 68.4 days
Test your understanding 4
B
16,000/38,512 = 41.5%
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