- 20 Marks
FA – July 2023 – L1 – Q5 – Interpretation of financial statements (Financial Ratios)
Calculate financial ratios and discuss ways to improve liquidity for a company using its financial statements.
Question
The following is a summary of the final accounts of Beposo Ltd for the year ended 31 December 2022.
Required:
a) Calculate each of the following ratios (where appropriate, calculations should be to two decimal places).
i) Sales to capital employed (2 marks)
ii) Current ratio (2 marks)
iii) Liquid (acid test) ratio (2 marks)
iv) Interest cover (2 marks)
v) Gearing ratio (2 marks)
b) Explain FOUR (4) ways in which Beposo Ltd could improve its liquidity. (10 marks)
Find Related Questions by Tags, levels, etc.
- Tags: Financial Ratios, Gearing, Interest Cover, Liquidity Ratios, Sales to Capital Employed
- Level: Level 1
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