Name: Anushka Dsilva
Tutor group: B
Unit 5 P5: You are required to perform ratio analysis to measure the profitability, liquidity and efficiency for JUTE FASHIONS LTD for the
year 2019. Unit 2 P7 illustrate the financial state of JUTE FASHIONS LTD.
NB: You will need the profit and loss account and the balance sheet you prepared in P4 to help you
Ratio Calculations for JUTE FASHIONS LTD.
Answer (rounded) to 2
Ratios Formulae Show Working decimal places
Profitability
Gross Profit Percentage Gross Profit x 100 285,000 x 100 81.43%
Sales Turnover 350,000
Net profit Percentage Net Profit x 100 58,000 x 100 16.71%
Sales Turnover 350,000
Return Capital Employed
Return on capital employed Net Profit x 100 58,500 x 100 0.10%
(ROCE)% where capital Capital employed 58,015,000
employed = Capital + Long-term
liabilities
1 Unit 2: Business Resources/ Business Accounting Task 3 Basic Ratios
Tutor group: B
Unit 5 P5: You are required to perform ratio analysis to measure the profitability, liquidity and efficiency for JUTE FASHIONS LTD for the
year 2019. Unit 2 P7 illustrate the financial state of JUTE FASHIONS LTD.
NB: You will need the profit and loss account and the balance sheet you prepared in P4 to help you
Ratio Calculations for JUTE FASHIONS LTD.
Answer (rounded) to 2
Ratios Formulae Show Working decimal places
Profitability
Gross Profit Percentage Gross Profit x 100 285,000 x 100 81.43%
Sales Turnover 350,000
Net profit Percentage Net Profit x 100 58,000 x 100 16.71%
Sales Turnover 350,000
Return Capital Employed
Return on capital employed Net Profit x 100 58,500 x 100 0.10%
(ROCE)% where capital Capital employed 58,015,000
employed = Capital + Long-term
liabilities
1 Unit 2: Business Resources/ Business Accounting Task 3 Basic Ratios