The Following Financial Statements Are for Rupert's Appliances,a Sole Trader,for

question 13

Essay

The following financial statements are for Rupert's Appliances,a sole trader,for the years ending 31 March 20X3,20X4 and 20X5.
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a Calculate the following ratios for the 20X5 year only.Show your calculations.
i Gross profit %,Net profit %,Return on equity %
ii Inventory turnover (times per year),Inventory turnover (days)
iii Accounts receivable turnover (times per year),Accounts receivable turnover (days)
iv Current ratio,Liquidity ratio,Equity ratio %.
b Comment on the ratios calculated above,and the financial statement results for Rupert's Appliances during the years 20X3-20X5 inclusive,in the following areas:
• profitability
• managerial performance
• financial stability.
c Recommend to Rupert what you consider to be the 6 most important things to do to correct his financial position and performance.

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Definitions:

Heredity and Environment

The interplay between genetic inheritance and environmental factors in influencing an individual's development and traits.

False Dichotomy

A logical fallacy consisting of a situation in which only two alternatives are considered, when in fact there are additional options.

Reasoning Fallacy

A flaw or error in reasoning that undermines the logical validity of an argument.

Alternative Explanations

Different reasons or theories provided to account for a phenomenon or observation.