You have been provided with the following information for City Projects Ltd:Statement of Comprehensive Income for the year ended 31 March 2021RRevenue (all credit)Gross profitOperating profitInterest expense610 000390 000170 00017 000|Profit before tax153 000Net profit after tax110 000Statement of Financial Position as at 31 March 2021RRAssetsNon -current assets700 000Current assets340 000Inventory70 000REGENT BUSINESS SCHOOL (RBS) JANUARY 202216POSTGRADUATE DIPLOMA IN PROJECT MANAGEMENT - ACADEMIC AND ASSESSMENT CALENDARDebtors150 000Bank120 0001 040 000Equity and LiabilitiesOwners' equity600 000Non-current liabilities300 000Current liabilities140 0001040 000Required:Calculate and comment on each of the following ratios (where applicable round off answers to twodecimal places):4.1 Gross margin4.2 Current ratio4.3 Acid-test ratio

Answer: Gross margin = Gross profit/ revenue Current ratio= Current assets/ Current liabilities…

Statement of Comprehensive Income for the year ended 31 March 2021 Revenue (all credit) Gross profit Operating profit Interest expense Profit before tax Net profit after tax R 610 000 390 000 170 000 17 000 153 000 110 000

Statement of Comprehensive Income for the year ended 31 March 2021 Revenue (all credit) Gross profit Operating profit Interest expense Profit before tax Net profit after tax R 610 000 390 000 170 000 17 000 153 000 110 000

Financial Reporting, Financial Statement Analysis and Valuation

8th Edition

ISBN:9781285190907

Author:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Publisher:James M. Wahlen, Stephen P. Baginski, Mark Bradshaw

Chapter12: Valuation: Cash-flow Based Approaches

Section: Chapter Questions

Problem 2BIC

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