Compute the return on ordinary shareholders equity

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Reference no: EM133112885

Question - Yadier NV's comparative statements of financial position are presented below:

Yadier NV Statement of Financial Position 31 December


2021 (RM)

2020 (RM)

Land

20,000

26,000

Buildings

70,000

70,000

Accumulated depreciation -buildings

(15,000)

(10,000)

Inventory

10,000

7,000

Account receivable

22,000

24,000

Cash

4,300

3,700

Total Assets

111,300

120,700




Share capital-ordinary

72,000

69,000

Retained earnings

24,300

20,600

Account payable

15,000

31,100

Total liability and Equity

111,300

120,700

Yadier's 2021 Statement of profit or loss included net sales of RM100,000, Cost of goods sold of RM60,350 and net income of RM14,000.

Required - Compute the following ratios for 2021:

1. Current ratio

2. Acid test ratio

3. Account receivable turnover

4. Inventory turnover

5. Profit margin

6. Asset turnover

7. Return on assets

8. Return on ordinary shareholders' equity

9. Debt to assets ratio

Reference no: EM133112885

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