The following data relates to a Joven Berhad: £000 £000 £000 Year ended 31 May 2016 2017 2018 Sales (all on credit) 130 155 180 Cost of sales 70 80 90 Expenses 45 55 60 Provision for tax 5 10 12 £1 ordinary shares in issue 100,000 100,000 100,000 Share price £1.40 £1.50 £1.60 TASKS a) For EACH of the three years calculate the following ratios: i The gross profit percentage ii The net profit after tax percentage iii The expenses to sales percentage iv The Earning Per Share v The Price Earning ratio b) Discuss briefly the trends revealed by the above ratios.
The following data relates to a Joven Berhad: £000 £000 £000 Year ended 31 May 2016 2017 2018 Sales (all on credit) 130 155 180 Cost of sales 70 80 90 Expenses 45 55 60 Provision for tax 5 10 12 £1 ordinary shares in issue 100,000 100,000 100,000 Share price £1.40 £1.50 £1.60 TASKS a) For EACH of the three years calculate the following ratios: i The gross profit percentage ii The net profit after tax percentage iii The expenses to sales percentage iv The Earning Per Share v The Price Earning ratio b) Discuss briefly the trends revealed by the above ratios.
Intermediate Accounting: Reporting And Analysis
3rd Edition
ISBN:9781337788281
Author:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Publisher:James M. Wahlen, Jefferson P. Jones, Donald Pagach
Chapter16: Retained Earnings And Earnings Per Share
Section: Chapter Questions
Problem 18P
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Question
The following data relates to a Joven Berhad:
|
£000 |
£000 |
£000 |
|
|
Year ended 31 May |
2016 |
2017 |
2018 |
|
Sales (all on credit) |
130 |
155 |
180 |
|
Cost of sales |
70 |
80 |
90 |
|
Expenses |
45 |
55 |
60 |
|
Provision for tax |
5 |
10 |
12 |
|
£1 ordinary shares in issue |
100,000 |
100,000 |
100,000 |
|
Share price |
£1.40 |
£1.50 |
£1.60 |
TASKS
- a) For EACH of the three years calculate the following ratios:
i The gross profit percentage
ii The net profit after tax percentage
iii The expenses to sales percentage
iv The Earning Per Share
v The Price Earning ratio
- b) Discuss briefly the trends revealed by the above ratios.
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ii The net profit after tax percentage
iv The Earning Per Share
v The Price Earning ratio
- b) Discuss briefly the trends revealed by the above ratios.
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