Exam 9: Understanding Financial Reports: Using Accounting Ratios

Elfrida plc has share capital of £7 500 000 in 50p ordinary shares.In the year ended 31 December 20X1 Elfrida plc paid a total of £675 000 in dividends to its ordinary shareholders. What was the dividend per share for the year ended 31 December 20X1.

Snodworth Limited's financial statements for the year ended 31 August 20X4 included the following information: What was interest cover (to two decimal places)?

A sole trader's cost of sales for the 20X3 financial year was £580 220.Cost of sales increased by 3% in the 20X4 financial year.Opening inventory at the beginning of the 20X4 financial year was £90 220.The inventory turnover figure for 20X4 in days, calculated using the average of opening and closing inventory, was 56.2 days. What was the closing inventory figure at 20X4 year end (to the nearest £)?

Which one of the following statements is correct? Dividend cover is calculated as:

Shelbyville Components plc is a listed company.Extracts from its financial statements for the year ended 31 March 20X5 are as follows: During the year the company paid dividends of £4 000 000 to its shareholders. The company's share capital throughout the financial year was 14.4 million ordinary shares of £1 nominal value. What was the company's earnings per share in pence for the year ended 31 March 20X5 (to one decimal place)?

Extracts from the financial statements of Downs and Wellbeck Limited for the year ended 31 December 20X3 were as follows: Which one of the following statements is correct?

Which one of the following statements is correct? The quick (or acid test) ratio is the ratio of:

Which one of the following statements is correct? Earnings per share is calculated as:

Market capitalization is calculated by which one of the following formulae?

Which one of the following statements is correct? The non-current assets turnover ratio is calculated as:

Chalfont Burgess Limited's financial statements for the year ended 31 March 20X8 included the following information: What was the company's non-current asset turnover ratio for the year (to two decimal places)?

Ambrose Atwater plc's results for the year ended 31 August 20X2 included the following information: profit after tax was £6 800 000, tax was £3 200 000 and total dividends paid were £2 000 000.The price of one ordinary share in the company on 31 August 20X2 was £2.92.The number of ordinary shares in issue throughout the financial year ended on 31 August 20X2 was 20 million. What was the company's price/earnings ratio at 31 August 20X2 (to one decimal place)?

Which one of the following statements is correct? Interest cover is calculated as:

Which one of the following statements is correct? Pre-tax return on shareholders' equity is calculated as:

Which one of the following statements about gearing is correct?

Which one of the following statements is correct? Inventory turnover ratio in months is calculated as:

Allardyce Smart plc is a listed company.Extracts from its financial statements for the year ended 30 April 20X2 are as follows: During the year the company paid dividends of £1 200 000 to its shareholders. During the year ended 30 April 20X2 the company had share capital of 20 million £1 ordinary shares.What was the company's earnings per share in pence for the year ended 30 April 20X2 (to one decimal place)?

Bellworth Limited has ordinary share capital of 6 000 000 shares of 25p each.Its retained earnings brought forward at 1 January 20X4 totalled £3 420 000 and the company made a loss of £300 000 in the year ended 31 January 20X4.The company's long-term borrowings remained the same throughout the 20X4 financial year at £1 800 000. What was the company's gearing ratio (calculated as debt as a percentage of equity) at 31 December 20X4 (to one decimal place)?

Bull Smythe plc is a listed company.Extracts from its financial statements for the 20X4 financial year are as follows: Dividends paid in the year were £12 000 000.During the 20X4 financial year the company's share capital was180 million shares of £1 each. What was the company's earnings per share in pence for the 20X4 financial year (to one decimal place)?

The directors of Brasenose Forceps Limited have taken steps during the 20X7 financial year to improve the company's quick and current ratios.Their target for the quick ratio was 0.80 and for the current ratio it was 1.75. Extracts from the company's statement of financial position at the 20X7 year end were as follows: Which one of the following statements is correct?