Quelpr
2 marksFinancial Ratio Analysis

CSEC Principles of Accounts · January 2013 · Paper 2 · Question 4(d)

Using TRU Brothers Enterprise's ratios (Net income margin 15%, Return on capital invested 18%) and those calculated in (b), make two different comments comparing the performance of K.A.M. Enterprise and TRU Brothers Enterprise.

The mark scheme is shown once you've answered.

Practise this question

Other parts of this question

  1. 4(a)Using the vertical style of presentation, prepare a classified Balance Sheet for K.A.M. Enterprise as at 31 December 2012.[10 marks]
  2. 4(b)Using the income statement given and the classified balance sheet prepared, calculate the Net income margin, Return on capital invested, and Current ratio.[5 marks]
  3. 4(c)Using the current ratio, comment on the liquidity position of K.A.M. Enterprise.[1 mark]
  4. 4(e)Calculate the value of TRU Brothers Enterprise's ending inventory using the First In, First Out (FIFO) method of stock valuation, stating the amount of units…[2 marks]

More practice: the rest of this paper · more Financial Ratio Analysis questions · all CSEC Principles of Accounts past papers