Accounting and Finance for Non-Specialists 10th. Edition by Peter Atrill, Eddie McLaney | 9781292135618 | 1292135611 | Holooly

Accounting for Business

Accounting and Finance for Non-Specialists

315 SOLVED PROBLEMS

Question: 3.A.6

Calculate the gross profit margin for Alexis plc for the year to 31 March 2016. ...

Verified Answer:

The ratio for 2016 is:

Gross profit margi...

Question: 3.A.10

Calculate the average settlement period for trade payables for Alexis plc for the year ended 31 March 2016. ...

Verified Answer:

The ratio for 2016 is: Average settlement period f...

Question: 3.A.16

Calculate the acid test ratio for Alexis plc as at 31 March 2016. ...

Verified Answer:

The ratio as at 31 March 2016 is: Acid test ratio ...

Question: 3.A.18

Calculate the gearing ratio of Alexis plc as at 31 March 2016. ...

Verified Answer:

The ratio as at 31 March 2016 is: Gearing ratio = ...

Question: 3.A.19

Calculate the interest cover ratio of Alexis plc for the year ended 31 March 2016. ...

Verified Answer:

The ratio for the year ended 31 March 2016 is: Int...

Question: 3.A.22

Calculate the dividend yield for Alexis plc for the year ended 31 March 2016. ...

Verified Answer:

The ratio for 2016 is: Dividend yield =

\fr...

Question: 7.A.23

In considering Goodsports Ltd (in Example 7.3), we saw that the general clothes department should not be closed ‘without any other developments’. What ‘other developments’ could affect this decision, making continuation either more attractive or less attractive? ...

Verified Answer:

The things that we could think of are as follows: ...

Question: 3.A.8

How will the eventual payment of the outstanding sales commission (Example 3.4) and the electricity bill for the last quarter (Example 3.5) be dealt with in the accounting records of Domestic Ltd? ...

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When these amounts are eventually paid, they will ...

Question: 3.A.15

Suppose that the 9,000 tonnes of inventories in Example 3.8 were sold for £15 a tonne. (a) Calculate the gross profit for the period under each of the three costing assumptions. (b) What do you note about the different profit and closing inventories valuations when using each method, when prices ...

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Your answer should be along the following lines: (...

Question: 3.A.13

Assume that the machine used in Example 3.7 was owned by a business that made a profit before depreciation of £40,000 for each of the four years in which the asset was held. Calculate the profit for the business for each year under each depreciation method, and comment on your findings. ...

Verified Answer:

Your answer should be as follows: Straight-lin...

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