ADM Ply Ltd has Total Assets of R850 000. Debt ratio for the firm is 80% of which 70% is long term liabilities. The Asset turnover is 6, net profit margin is 12%, the interest rate is 8% and tax rate is 40% for the firm. Calculate the following for the firm: 1. Sales for the company is R 2. Net profit after tax is r 3. Taxes are R 4. Interest expense for the firm is R 5. Eamings before interest and tax is R 6. The coverage ratio for the firm is 7. Retur on assets is 8. Return on equity is and Earnings before tax is therefore R % 9. The current liabilities figure for the firm is R

ADM Ply Ltd has Total Assets of R850 000. Debt ratio for the firm is 80% of which 70% is long term liabilities. The Asset turnover is 6, net profit margin is 12%, the interest rate is 8% and tax rate is 40% for the firm. Calculate the following for the firm: 1. Sales for the company is R 2. Net profit after tax is r 3. Taxes are R 4. Interest expense for the firm is R 5. Eamings before interest and tax is R 6. The coverage ratio for the firm is 7. Retur on assets is 8. Return on equity is and Earnings before tax is therefore R % 9. The current liabilities figure for the firm is R

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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