- 20 Marks
ITA – APR 2023 – L1 – Q5 – Accounting Ratios Computation
Compute specified accounting ratios for 2020 and 2021 using the provided financial statements for Lynmed Pharmacy Limited.
Question
As a Loan officer for HBF Bank, you have received the below listed financial statements from a pharmacist requesting for a loan of GH$100,000,00. Using the financial statement presented below, compute the following accounting ratios for the years 2020 and 2021. a. Gross profit/(loss) margin b. Current Ratio c. Acid Test Ratio d. Debt to equity ratio e. Inventory period (Total: 20 marks)
LYNMED PHARMACY LIMITED STATEMENT OF COMPREHENSIVE INCOME FOR THE YEAR ENDED 31. DECEMBER 2021
LIABILITIES AND SHAREHOLDERS’ EQUITY
CURRENT LIABILITIES Account Payable Taxation Total Liabilities SHAREHOLDERS’ EQUITY Stated Capital Shareholders Account Income Surplus Total Shareholders’ Equity TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
65,447 118,58
65,447 118,58
(Note: OCR is repeated and garbled; figures appear as 65,447 and 118,58 for different lines/years, but incomplete. Assuming for model: two years’ data, e.g., 2020: Accounts Payable 65,447, Taxation 118,58? But clearly OCR error, perhaps 65,447 for 2020 Payable, 118,580 for Taxation or something. Income statement not provided. For answer, I’ll assume typical figures or note incompleteness.)
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