Category: Accounting

Wood Dragon Ltd has provided a list of its assets and liabilities as at 31 December 2017 as follows:

• Long-Term Assets £1.8M
• Inventory £1.7M
• Accounts Receivables £1.5M
• Bank Account £1.4M
• Cash £0.1M
• Accounts Payable £1.9M
• Long-term Bank Loan £4M
• Reserves  £0.5M
• Share Capital £1.0M
• Revenue  £20.8M
• Cost-of-Sales  £17.0M
• Net Profit Margin  £1.5M
• Purchases  £10.1M

What is Wood Dragon’s Rate of Inventory Turnover (days) ratio?

Select ONE answer:

1. 10.00
2. 26.32
3. 2.47
4. 36.5
5. 1.58

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This is multiple choice question is suitable for Accounting KS5 classes.

The answer is 4 – £1.7M / £17M * 365 = 36.5 days

This work is licensed under a Creative Commons Attribution 4.0 International License.

Wood Dragon Ltd has provided a list of its assets and liabilities as at 31 December 2017 as follows:

• Long-Term Assets £1.8M
• Inventory £1.7M
• Accounts Receivables £1.5M
• Bank Account £1.4M
• Cash £0.1M
• Accounts Payable £1.9M
• Long-term Bank Loan £4M
• Reserves  £0.5M
• Share Capital £1.0M
• Revenue  £20.8M
• Cost-of-Sales  £17.0M
• Net Profit Margin  £1.5M
• Purchases  £10.1M

What is Wood Dragon’s Liquidity capital ratio (acid test or quick ratio)?

Select ONE answer:

1. 10.00
2. 26.32
3. 2.47
4. 36.5
5. 1.58

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This is multiple choice question is suitable for Accounting KS5 classes.

The answer is 5 – (£1.5M + £1.4M + £0.1M) / £1.9M = 1.58

This work is licensed under a Creative Commons Attribution 4.0 International License.

Wood Dragon Ltd has provided a list of its assets and liabilities as at 31 December 2017 as follows:

• Long-Term Assets £1.8M
• Inventory £1.7M
• Accounts Receivables £1.5M
• Bank Account £1.4M
• Cash £0.1M
• Accounts Payable £1.9M
• Long-term Bank Loan £4M
• Reserves  £0.5M
• Share Capital £1.0M
• Revenue  £20.8M
• Cost-of-Sales  £17.0M
• Net Profit Margin  £1.5M
• Purchases  £10.1M

What is Wood Dragons Current Ratio (working capital ratio)?

Select ONE answer:

1. 10.00
2. 26.32
3. 2.47
4. 36.5
5. 1.58

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This is multiple choice question is suitable for Accounting KS5 classes.

The answer is 3 – (£1.7M + £1.5M + £1.4M + £0.1M) / £1.9M = 2.47

This work is licensed under a Creative Commons Attribution 4.0 International License.

Wood Dragon Ltd has provided a list of its assets and liabilities as at 31 December 2017 as follows:

• Long-Term Assets £1.8M
• Inventory £1.7M
• Accounts Receivables £1.5M
• Bank Account £1.4M
• Cash £0.1M
• Accounts Payable £1.9M
• Long-term Bank Loan £4M
• Reserves  £0.5M
• Share Capital £1.0M
• Revenue  £20.8M
• Cost-of-Sales  £17.0M
• Net Profit Margin  £1.5M
• Purchases  £10.1M

What is Wood Dragon’s ROCE percentage?

Select ONE answer:

1. 22.35
2. 11.06
3. 27.27
4. 7.21
5. 18.27

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This is multiple choice question is suitable for Accounting KS5 classes.

The answer is 3 – Return on Capital Employed. Return on capital employed or ROCE is a profitability ratio that measures how efficiently a company can generate profits from its capital employed by comparing net operating profit to capital employed.  £1.5M / (£4M + £0.5M + £1.0M) * 100 = 27.27%

This work is licensed under a Creative Commons Attribution 4.0 International License.

Wood Dragon Ltd has provided a list of its assets and liabilities as at 31 December 2017 as follows:

• Long-Term Assets £1.8M
• Inventory £1.7M
• Accounts Receivables £1.5M
• Bank Account £1.4M
• Cash £0.1M
• Accounts Payable £1.9M
• Long-term Bank Loan £4M
• Reserves  £0.5M
• Share Capital £1.0M
• Revenue  £20.8M
• Cost-of-Sales  £17.0M
• Net Profit Margin  £1.5M
• Purchases  £10.1M

What is Wood Dragon’s Net Margin Percentage?

Select ONE answer:

1. 22.35
2. 11.06
3. 27.27
4. 7.21
5. 18.27

Show your workings to arrive at your answer, and explain and justify your reasons:

……………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………………

This is multiple choice question is suitable for Accounting KS5 classes.

The answer is 4 – £1.50M / £20.8M* 100 = 7.21%

This work is licensed under a Creative Commons Attribution 4.0 International License.