Page 416 - F3 -FA Integrated Workbook STUDENT 2018-19

Chapter 24

Example 3 cont.

Solution

20X6 20X5
Gearing
Debt/(debt + equity)

(11,000/ 36.5% (8,000/ 33.1%

(11,000 + 19,100) (8,000 + 16,200)

Interest cover

Profit from operations/finance costs
(5,000/600) 8.3 (5,000/480) 10.4

410