The following information is relevant to questions 1 and 2:

Prakash and Pizzey Limited have the following relevant information in their financial statements drawn up to 31 May 20X4:

	£
Gross profit	984 217
Various expenses	557 032
Operating profit	427 185
Finance costs	93 700
Profit before taxation	333 485
Tax	94 440
Profit for the year	239 045

Extracts from the statement of financial position:

Share capital (£1 shares)	200 000
Retained earnings	1 825 450
Borrowings	1 300 000

What is the return on total capital employed?

What is interest cover?

Which of the following statements is correct?

The quick ratio is the ratio of:

Parmar Wallace Limited has the following items included in its statement of financial position at 31 March 20X5:

	£	£
Inventory		259 270
Trade receivables	224
	750
Less: allowance for doubtful receivables	(8 620)
		216 130
Cash at bank		17 526
Trade payables		298 442

The company belongs to a trade association which has recently published industry averages for key financial ratios based upon a survey of its members. The industry averages for current and quick ratios are:

Current ratio	1.82:1
Quick ratio	0.93:1

Which of the following statements is correct?

Ptarmigan Poleaxe Limited has the following details relating to its non-current assets in its statement of financial position at 31 August 20X3:

	£	£	£
Land	65 000	-	65 000
Buildings	100 000	12 000	88 000
Plant and machinery	176 700	53 500	123 200

The company reported revenue of £424 600 less returns of £13 259 in the year.
What is the non-current asset turnover ratio (to 2 decimal places) ?

A company has inventory at cost of £176 255 in its statement of financial position at 31 March 20X4. The inventory level at this date is 20% higher than it was at the beginning of the year.

80% of the company’s purchases of inventory are made on credit.
Cost of sales for the year ending 31 March 20X4 was £1 396 400.
What is the inventory turnover in days (to one decimal place)?

Porter Plymouth Limited has the following information relevant to trade receivables and revenue in its financial statements at 31 December 20X5:

	£
Revenue (75% of which are on credit)	1 670 227
Trade receivables	165 923
Less: allowance for doubtful receivables	(18 552)
	147 371

Trade receivables turnover in days (to one decimal place) is:

The following information is relevant for questions 8 and 9:

Plinlimmon Pleasance plc is a quoted company. Extracts from its financial statements for the year ending 28 February 20X2 include the following:

	£000
Revenue	22 840
Operating profit	6 149
Finance costs	(1 437)
Profit before tax	4 712
Taxation	(1 500)
Profit for the year	3 312

The company paid a dividend of £860 000 in the year
The company has 5 000 000 25p ordinary shares in issue. At 28 February 20X2 the market price of one share was £3.83.


The dividend cover ratio (to 2 decimal places) is:

Earnings per share (to one decimal place) is:

At 31 May 20X6 Palethorpe and Swizzell plc has a market capitalisation of £13 950 000 with 5 000 000 50p ordinary shares in issue.

Extracts from the company’s income statement at that date show:

	£000
Operating profit	2 256
Finance costs	(600)
Profit before taxation	1 656
Tax	(536)
Profit for the year	1 120

The company paid a dividend of £500 000 during the year.
What is the company’s P/E ratio (to one decimal place)?