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The summarised accounts of Mwangaza Ltd. for the year ended 31 March2011 and 2012 are as follows:
The summarised accounts of Mwangaza Ltd. for the year ended 31 March2011 and 2012 are as follows:
2012 2011
Balance Sheet Sh. '000' Sh. '000'
Investments at cost 16,000 16,000
Land 12,600 8,800
Plant and machinery, at cost 2,200 2,000
Buildings, at cost 18,000 10,000
Stock 13,000 11,000
Debtors 10,000 8,000
Bank -___ -__
71,800 50,400
Ordinary shares Sh.20 each 10,000 8,000
Share premium 2,800 2,600
Revaluation reserve 4,000 5,000
Profit and Loss Account 5,000 5,000
10% Debentures 30,000 20,000
Accumulated Depreciation:
Plant and machinery 1,000 800
Building 2,200 2,200
Creditors 12,000 8,000
Proposed dividend 4,000 4,000
Bank 800 -__
71,800 50,400
Profit and Loss Account:
Sales 40,000 40,000
Cost of Sales 24,000 20,000
16,000 20,000
Expenses 12,000 12,000
4,000 8,000
Dividends 4,000 4,000
- 4,000
Balance brought forward 5,000 1,000
Balance carried forward 5,000 5,000
Required:
(a) Calculate for Mwangaza Ltd. for 2011 and 2012 the following ratios:
(1) Gross profit percentage
(2) Net profit percentage
(3) Debtors turnover
(4) Creditors turnover
(5) Current ratio
(6) Quick assets (acid test) ratio
(7) Dividend cover
(8) Gearing ratio
(9) Return on capital employed
