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Suggest one way to increase company's working capital.
increase profits / reduce drawings (any acceptable answer)
Why is the bank manager interested in the company's financial statement?
to check whether repayments of loan and interest be made on time
calculate profit margin
9.35
calculate gross profit margin
22.75%
State the formula for ROCE
Profit / capital employed
Calculate current ratio
1.46 : 1
State the purpose of calculating the collection period for trade receivables.
To see the average time the trade receivables take to pay their accounts.
State the formula for trade payable payment period
Trade payables/credit purchases x 365
State the formula for quick ratio
CA-inv /CL