Exam 9: Understanding Financial Reports: Using Accounting Ratios

The following information is available for Robin and Sparrow Limited for the 20X6 financial year: What was the trade payables' turnover period in days (to one decimal place)?

The following information is available for David, a sole trader, for the 20X4 financial year: What was the trade payables' turnover period in days (to one decimal place)?

Brilliant and Diamond plc is a listed company with a market capitalization at 31 December 20X6 of £9 996 000.The company has ordinary share capital of 1.2 million ordinary shares and preference share capital of 0.3 million.Profit before tax was £583 000 and profit after tax (after deduction of preference dividend but before ordinary dividend) was £402 000.Ordinary dividends paid in the year were £120 000. What was the company's price/earnings ratio at 31 December 20X6 (to one decimal place)?

Spacek Pavilions Limited's financial information for the year ended 31 March 20X9 included the following: Dividends paid in the year were £120 000. What was the company's dividend cover (to one decimal place)?

Tilbury Towers Limited's financial information for the year ended 28 February 20X4 included the following: What was the company's trade receivables collection period in days (to two decimal places)?

The following figures are extracted from the financial statements of Brindle Bucket Limited at 31 March 20X8: The budgeted inventory turnover period in days for the company for the financial year ended 31 March 20X8 was 59.3 days.Trade payables turnover period in days was budgeted at 84.1 days. Which one of the following statements is correct?

The following information is available for Davey Pilbrick Products for the 20X2 financial year: What is the trade payables' turnover period in days (to one decimal place)?

The following information is available for Milford Spencer Limited for the 20X7 financial year: How many times, on average, has inventory turned over in the year (to one decimal place)?

Extracts from the financial statements of Snowdrop Products Limited for the year ended 31 January 20X2 are as follows: What is the gearing ratio (worked out as debt/debt + equity) (to one decimal place)?

The following information is available for Pearcey Delaware Limited for the 20X6 financial year: What is the company's inventory turnover ratio in days (to one decimal place)?

The following information is available for Delaney's Fabrics for the 20X9 financial year: How many times, on average, has inventory turned over in the year (to one decimal place)?

Paura and Fear plc is a listed company.Extracts from its financial statements for the year ended 31 December 20X2 are as follows: During the year the company paid a dividend of £4 000 000 to its shareholders. What was the company's dividend cover for the year ended 31 December 20X2 (to two decimal places)?

Dilworth and Best Limited's financial statements for the year ended 31 March 20X6 included the following information: Extracts from the statement of financial position: What was the return on total capital employed (to one decimal place)?

Belair Forton Limited recorded revenue of £2 266 380 in the 20X1 financial year, of which 47% was on credit.The average trade receivables figure over that period was £152 630. What was the trade receivables collection period in months (to one decimal place)?

Zeela Limited has 100 000 £1 ordinary shares, and £50 000 in 10% preference shares.During its financial year ended 31 March 20X7 the company paid its preference dividend and an ordinary dividend of £2300.What was the company's dividend per ordinary share for the year ended 31 March 20X7?

Swale and Fraser plc had a P/E ratio of 16.8 at 31 December 20X9.The company's ordinary share capital was 9.3 million £1 ordinary shares.Earnings per share for the financial year ended 31 December 20X9 was 30.2p. What was the company's market capitalization at 31 December 20X9 (to the nearest £000)?

Bence and Bentham plc's statement of profit or loss for the year ended 30 April 20X8 included the following information: The total dividend paid during the financial year was £3 000 000.The number of shares in issue throughout the year was 30 million £1 ordinary shares.The company's price/earnings ratio was 12.8. What was the price of one ordinary share on 30 April 20X8 in pence (to one decimal place)?

A sole trader's revenue for the 20X6 financial year was £686 333.Revenue increased by 8% in the 20X7 financial year.In both years, revenue on credit accounted for 75% of total revenue.The trade receivables turnover ratio for 20X7, calculated using the closing trade receivables figure, was 38.6 days. What was the trade receivables figure at the 20X7 year end (to the nearest £)?

Timoleon plc is a listed company.Extracts from its financial statements for the year ended 31 August 20X4 are as follows: During the year, the company paid £1 200 million in dividends. What was the company's dividend cover for the year ended 31 December 20X2 (to two decimal places)?