Tag (SQ): Gross Profit

Search 500 + past questions and counting.

  • Filter by Professional Bodies

  • Filter by Subject

  • Filter by Topics

  • Filter by Levels

  • 8 Marks

MA – L2 – Q58 – Performance analysis

Calculate and define financial ratios for Akwasi and Kofi, two manufacturing companies, using their financial statements.

The statements of profit or loss and statements of financial position of two manufacturing companies in the same sector are set out below.

Statement of profit or loss for Akwasi

ZC¢
Revenue 150,000
Cost of sales (60,000)
Gross profit 90,000
Interest payable (500)
Distribution costs (13,000)
Administrative expenses (15,000)
Profit before tax 61,500
Income tax expense (16,605)
Profit for the period 44,895

Statements of financial position for Akwasi and Kofi

Akwasi Kofi
ZC¢ ZC¢
Assets
Non-current assets
Property 280,000
Plant and equipment 190,000 500,000
190,000 780,000
Current assets
Inventories 12,000 26,250
Trade receivables 37,500 105,000
Cash at bank 22,000
49,500 153,250
Total assets 240,000 933,250
Equity and liabilities
Equity
Share capital 156,000 174,750
Retained earnings 51,395 390,830
207,395 565,580
Non-current liabilities
Long-term debt 10,000 250,000
Current liabilities
Trade payables 22,605 117,670
Total equity and liabilities 240,000 933,250

Required:

Define and calculate the following ratios for each company:

(a) Gross profit percentage (2 marks)

(b) Net profit percentage (2 marks)

(c) Return on capital employed (2 marks)

(d) Asset turnover (2 marks)

The statements of profit or loss and statements of financial position of two manufacturing companies in the same sector are set out below.

Statement of profit or loss for Akwasi

ZC¢
Revenue 150,000
Cost of sales (60,000)
Gross profit 90,000
Interest payable (500)
Distribution costs (13,000)
Administrative expenses (15,000)
Profit before tax 61,500
Income tax expense (16,605)
Profit for the period 44,895

Statements of financial position for Akwasi and Kofi

Akwasi Kofi
ZC¢ ZC¢
Assets
Non-current assets
Property 280,000
Plant and equipment 190,000 500,000
190,000 780,000
Current assets
Inventories 12,000 26,250
Trade receivables 37,500 105,000
Cash at bank 22,000
49,500 153,250
Total assets 240,000 933,250
Equity and liabilities
Equity
Share capital 156,000 174,750
Retained earnings 51,395 390,830
207,395 565,580
Non-current liabilities
Long-term debt 10,000 250,000
Current liabilities
Trade payables 22,605 117,670
Total equity and liabilities 240,000 933,250

Required:

Define and calculate the following ratios for each company:

(a) Gross profit percentage (2 marks)

(b) Net profit percentage (2 marks)

(c) Return on capital employed (2 marks)

(d) Asset turnover (2 marks)

The statements of profit or loss and statements of financial position of two manufacturing companies in the same sector are set out below.

Statement of profit or loss for Akwasi

ZC¢
Revenue 150,000
Cost of sales (60,000)
Gross profit 90,000
Interest payable (500)
Distribution costs (13,000)
Administrative expenses (15,000)
Profit before tax 61,500
Income tax expense (16,605)
Profit for the period 44,895

Statements of financial position for Akwasi and Kofi

Akwasi Kofi
ZC¢ ZC¢
Assets
Non-current assets
Property 280,000
Plant and equipment 190,000 500,000
190,000 780,000
Current assets
Inventories 12,000 26,250
Trade receivables 37,500 105,000
Cash at bank 22,000
49,500 153,250
Total assets 240,000 933,250
Equity and liabilities
Equity
Share capital 156,000 174,750
Retained earnings 51,395 390,830
207,395 565,580
Non-current liabilities
Long-term debt 10,000 250,000
Current liabilities
Trade payables 22,605 117,670
Total equity and liabilities 240,000 933,250

Required:

Define and calculate the following ratios for each company:

(a) Gross profit percentage

(b) Net profit percentage

(c) Return on capital employed

(d) Asset turnover

Login or create a free account to see answers

Login | Register

Find Related Questions by Tags, levels, etc.

Report an error
Report an error

You're reporting an error for "MA – L2 – Q58 – Performance analysis"

  • 18 Marks

MA – L2 – Q57 – Performance analysis

Evaluate KINTAMPO LTD's performance using financial ratios for two divisions, Amir and Mo.

Zestco is an importer and retailer of vegetable oils. Extracts from the financial statements for this year and last are set out below.

Statements of profit or loss for the years ended 30 September

Year 7 Year 6
ZC¢’000 ZC¢’000
Revenue 2,160 1,806
Cost of sales (1,755) (1,444)
Gross profit 405 362
Distribution costs (130) (108)
Administrative expenses (260) (198)
Profit before tax 15 56
Income tax expense (6) (3)
Profit for the period 9 53

Statements of financial position as of 30 September

Year 7 Year 6
ZC¢’000 ZC¢’000
Assets
Non-current assets
Property, plant and equipment 78 72
Current assets
Inventories 106 61
Trade receivables 316 198
Cash 6
428 259
Total assets 506 331
Equity and liabilities
Equity
Ordinary shares 110 85
Preference shares 23 11
Share premium 15
Revaluation reserve 20
Retained earnings 78
Current liabilities
Bank overdraft 49
Trade payables 198
Current tax payable 7
Total equity and liabilities

Required:

Define and calculate the following ratios for each year:

(a) Gross profit percentage

(b) Net profit percentage

(c) Return on capital employed

(d) Asset turnover

(e) Current ratio

(f) Quick ratio

(g) Average receivables collection period

(h) Average payables period

(i) Inventory turnover.

Login or create a free account to see answers

Login | Register

Find Related Questions by Tags, levels, etc.

Report an error
Report an error

You're reporting an error for "MA – L2 – Q57 – Performance analysis"

  • 9 Marks

FA – L1 – Q93 – Inventory

Calculate gross profit and percentage for FreshProduce with given sales, inventory, and purchases.

(A). A FreshProduce made sales during the month of GH₵49,200. Opening inventory amounted to GH₵3,784 and month-end inventory was GH₵5,516. During the month, he purchased for cash goods which cost GH₵38,632.

Required:
Determine the gross profit and calculate the gross profit percentage as a percentage of sales value.

(B). A Competitor has made sales of GH₵50,100 at a fixed mark-up of 25%. Closing inventory was valued at GH₵5,438 and he purchased goods during the month amounting to GH₵38,326.

Required:
Determine the value of the opening inventory.

(C) . A CommunityMart makes sales at a fixed gross profit of 10% on sales value. Sales during the month amounted to GH₵186,460; closing inventory was GH₵16,800 and represents an increase of 25% over the value of the opening inventory.

Required:
Determine the cost of purchases during the month.

Login or create a free account to see answers

Login | Register

Find Related Questions by Tags, levels, etc.

Report an error
Report an error

You're reporting an error for "FA – L1 – Q93 – Inventory"

  • 20 Marks

FA – L1 – Q75 – Preparation of limited liability company financial statements

Prepare Amswaim Beauty Products Limited's statement of profit or loss for the year ended 30 June 20X9 per IAS 1, with expense allocation by function.

The following draft statement of profit or loss has been prepared for Amswaim Beauty Products Limited for the year ended 30 June 20X9.

GH¢000 GH¢000
Opening inventory 78 Sales 2,282
Purchases 1,055 Sales returns (66)
Purchase returns (25)
Gross profit c/d 1,170 Closing inventory 62
2,278 2,278
Wages and salaries 160 Gross profit b/d 1,170
Office expenses 236 Dividends received 20
Depreciation:
Plant and machinery 84
Delivery vans 48
Office furniture 17
Directors’ salaries 163
Selling expenses 95
Rent of plant and machinery 21
Factory expenses 109
Legal expenses 25
Interest charges 70
Net profit c/d 162
1,190 1,190
Taxation on profits
Net profit after tax 116 Net profit b/d 162
Tax over-provided in the previous year 8
170 170

Additional Information:
(1) Directors’ salaries are classified as administrative expenses.
(2) Other wages and salaries are apportioned 70% to distribution costs and 30% to administrative expenses.
(3) Amswaim Beauty Products Limited analyses expenses by function.

Required:
Prepare the company’s statement of profit or loss for the year to 30 June 20X9 in accordance with IAS 1 Presentation of Financial Statements.

Login or create a free account to see answers

Login | Register

Find Related Questions by Tags, levels, etc.

Report an error
Report an error

You're reporting an error for "FA – L1 – Q75 – Preparation of limited liability company financial statements"

knowsia

Elevate your professional expertise across key business domains with our comprehensive training programs

Our offerings

Community

Contact Info

  • +233203701923
    +233543919232
  • info@knowsia.com

Customer

Get In Touch

Follow us on our social media and get daily updates.

Facebook-f Twitter Linkedin-in Envelope
Oops!

This feature is only available in selected plans.

Click here to view all plans

Click on the login button below to login if you’re already subscribed to a plan or click on the upgrade button below to upgrade your current plan.

Login
Upgrade Plan

If you’re not subscribed to a plan, click on the button below to choose a plan

Subscribe to a plan

Pick a Form

Professional Tutor Application Form
Academic Tutor Application Form
Student Tutor Application Form