Formulas

Question 1

SLM Depreciation expense

Answer 1

cost-scrap value/useful life
OR
rate of depreciation*(cost-scrap value)

Question 2

RBM Depreciation expense

Answer 2

rate of depreciation * Net Book Value

Question 3

Gross Profit Margin

Answer 3

Gross Profit/Net Sales Revenue * 100%

Question 4

Mark up on cost

Answer 4

Gross Profit/Cost of Sales * 100%

Question 5

Profit Margin

Answer 5

Profit/Net Sales Revenue * 100%

Question 6

Return on equity

Answer 6

Profit/Avg Equity * 100%

Question 7

Average equity

Answer 7

Equity(start)+Equity(End) / 2

Question 8

Working Capital

Answer 8

CA-CL

Question 9

Current ratio

Answer 9

CA/CL

Question 10

Quick Ratio

Answer 10

CA-inventory-prepaid exp / CL
OR
Cash+Receivables / CL

Question 11

Rate of inventory turnover

Answer 11

Cost of sales/Average inventory

Question 12

Average inventory

Answer 12

Inventory(start)+Inventory(end) / 2

Question 13

Day sales in inventory

Answer 13

Avg inventory/Cost of Sales * 365
OR
1/rate of inventory turnover * 365

Question 14

Net trade receivables

Answer 14

Trade receivables - allowance for impairment of TR

Question 15

Avg Net Trade receivables

Answer 15

Net TR(stsrt)-Net TR(end) / 2

Question 16

Rate of Trade Receivables turnover

Answer 16

Net credit sales OR Service fee revenue
divided by average net TR

Question 17

Trade receivables collection period

Answer 17

Average TR/net credit sales or service fee revenue * 365

1/rate of TR turnover * 365