Financial Accounting 1B

Gross profit percentage

Given Sales = R1 707 500 and Cost of sales = R1 182 500, what is the gross profit %?

• 28.0%

• 30.8%

• 33.0%

• 35.0%

Net profit percentage

Given Profit after tax = R248 400 and Sales = R1 707 500, what is the net profit %?

• 14.5%

• 15.8%

• 17.0%

• 18.5%

Current ratio

At 30 Sept 2024: Trade receivables = R240 000, Inventory = R142 500 (so Current assets = R382 500); Bank overdraft = R30 000 and Trade payable = R120 000 (so Current liabilities = R150 000).

What is the current ratio (CA ÷ CL)?

• 2.00:1

• 2.25:1

• 2.55:1

• 2.80:1

Quick (acid-test) ratio

Using the same figures as Q3, quick assets = R382 500 − R142 500 = R240 000.

What is (Quick assets ÷ Current liabilities)?

• 1.25:1

• 1.40:1

• 1.60:1

• 1.80:1

Creditors’ payment period (days)

All purchases are on credit: Credit purchases = R1 165 000. Trade payables: Opening = R140 000, Closing = R120 000.

What is (Average trade payables ÷ Credit purchases) × 365?

• 36 days

• 41 days

• 48 days

• 55 days

Stock (inventory) turnover rate (times)

Use Cost of sales = R1 182 500; Inventory: Opening = R160 000, Closing = R142 500.

What is (COGS ÷ Average inventory)?

• 6.9 times

• 7.3 times

• 7.8 times

• 8.4 times

Days inventory on hand

Using the same inventory figures as Q6, what is

(Average inventory ÷ COGS) × 365?

• 42 days

• 45 days

• 47 days

• 50 days

Net working capital

From Q3, Current assets = R382 500 and Current liabilities = R150 000.

What is (CA − CL)?

• R205 000

• R225 000

• R232 500

• R250 000