Analytical Procedures

Question 1

Return on capital employed

Answer 1

Profit before interest and tax
—————————————
Capital employed

Question 2

Profit before interest and tax
—————————————
Capital employed

Answer 2

Return on capital employed

Question 3

Gross product margain

Answer 3

Gross profit
—————————————
Revenue

Question 4

Gross profit
—————————————
Revenue

Answer 4

Gross profit margain

Question 5

Cost of sales percentage

Answer 5

Cost of sales
—————————————
Revenue

Question 6

Cost of sales
—————————————
Revenue

Answer 6

Cost of sales percentage

Question 7

Operating cost percentage

Answer 7

Operating costs
—————————————
Revenue

Question 8

Operating costs
—————————————
Revenue

Answer 8

Operating cost percentage

Question 9

Net profit margain

Answer 9

NP (profit before I and T)
—————————————
Revenue

Question 10

NP (profit before I and T)
—————————————
Revenue

Answer 10

Net profit margain

Question 11

Current ratio

Answer 11

Current assets
—————————————
Current liabilities

Question 12

Current assets
—————————————
Current liabilities

Answer 12

Current ratio

Question 13

Quick ratio (acid test)

Answer 13

Receivables + C investments + cash
—————————————
Current liabilities

Question 14

Receivables + C investments + cash
—————————————
Current liabilities

Answer 14

Quick ratio (acid test)

Question 15

Gearing

Answer 15

Net debt
—————————————
Equity

Question 16

Net debt
—————————————
Equity

Answer 16

Gearing

Question 17

Interest cover

Answer 17

Profit before interest payable
—————————————
Interest payable

Question 18

Profit before interest payable
—————————————
Interest payable

Answer 18

Interest cover

Question 19

Net asset turnover

Answer 19

Revenue
—————————————
Capital employed

Question 20

Revenue
—————————————
Capital employed

Answer 20

Net asset turnover

Question 21

Inventory period

Answer 21

Inventory
—————————————
COS

(x 365)

Question 22

Inventory
—————————————
COS

(x 365)

Answer 22

Inventory period

Question 23

Inventory
—————————————
COS

(x 365)

Answer 23

Inventory period

Question 24

Trade receivable period

Answer 24

Trade receivables
—————————————
Revenue

(x 365)

Question 25

Trade receivables ————————————— Revenue (x 365)

Answer 25

Trade receivables period

Question 26

Trade payable period

Answer 26

Trade Payables ————————————— COS (x 365)

Question 27

Trade Payables ————————————— COS (x 365)

Answer 27

Trade payable period