Calculate TEN ratios for both companies using comparable formulae; (max 40%)
Profit and loss accounts: – £000’s £000’s Turnover 420,000 Cost of sales 336,000 Gross profit 84,000 Less expenses: Administration 14,300 Selling and distribution 13,500 Directors’ emoluments 11,000 Depreciation 9,000 Overdraft interest 500 Debenture interest 4,200 52,500 Profit before tax 31,500 Corporation tax 20,000 Profit after tax 11,500 Retained profits 60,000 Retained profits at year end […]