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Posts : 638 Points : 2155 Reputation : 19 Join date : 2010-05-15 Age : 36 Location : islamabad
| Subject: fin621 assignment solution Thu Jul 22, 2010 8:53 pm | |
| - Quote :
(a) Inventory Age turn over ratio Average inventory*365/ CGS 526500*365/2632500= 73 days tell me if i am wrong about first question b). Return on capital employed (ROI) ? =(Net Profit before interest, tax/Capital employed)*100 =(238,500/1,192,500)*100 =20% now ABC obtain a long term loan on 10% but ROI of ABC co. ltd. is 20% so, company have the potential to pay interest . 10% c). Operating expenses = Gross profit-Net income = 1,417,500-238,500 Operating expenses =1,179,000 guyes may b i m wrong please check out before send the anwer.
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