The financial statements below relate to Banking and Finance Limited

Statement of income
N N
Sales 425,000
Less: cost of sales 212,500
Gross profit 212,500
Less: administration costs 17,850
Depreciation 25,100
selling cost 47,600 90,550
Net profit before tax 121,950

Statement of financial position

N N
Non-current assets
Cost 251,000
Less: accumulated depreciation 159,600
91,400
Current assets
Stock 70,900
Debtors 53,125 124,025
215,425

Share capital: ordinary N1- shares 30,000

Retained profits 172,050
202,050
Current liability: bank overdraft 13,375
215,425

Given the above details calculate the following ratios:

i. Gross profit percentage
ii. Net profit percentage
iii. Return on total assets
iv. Return on shareholders’ funds
v. Stock turnover ratio
vi. Debtors collection period
vii. Non-current assets turnover

Suggestions
gross profit 100 212,500 100
i. Gross profit percentage = x = x = 50%
sales 1 425,000 1
 net profit before tax 100 121,950 100
ii. Net profit percentage = x = x = 28.7%
sales 1 425,000 1
net profit 100 121,950 100
iii. Return on total assets = x = x = 56.6%
total assets 1 215,425 1

net profit 100 121,950 100

iv. Return on shareholders’ funds = x = x = 60.4%
shareholders fund 1 202,050 1

cost of sales 100 212,500

v. Stock turnover ratio = x = = 3.0 times
stock 1 70,900

debtors 100 53,125 365

vi. Debtors collection period = x = x = 46 days
credit sales 1 425,000 1

sales 425,000
vii. Non-current assets turnover = = = 4.6 times
non current assets 91,400