ࡱ> Root EntryRoot Entry FШbFk CompObj-fWorkbookMeMSDigSig(Author)$BH  !"#$%&'()*+,-./0123456789:;<=>?@ACDEFGHIJKLNOPQRSTUVWXYZ[\]^_`abcdefghijklmnopqrstuvwxyz{|}~SummaryInformation( DjDocumentSummaryInformation80   !"#$%&'()*+,.՜.+,D՜.+,$ PXd lt| /  Question Worksheet Solution  Worksheets  8@ _PID_HLINKSA Mmsbpz://-r:276DB14B/msbpz://-r:276DB147/:;msbp://-r:276DB14B/msbpz://-r:276DB149/msbpz://-r:276DB148/:nmsbp://-r:276DB147/msbpz://-r:276DB146/msbpz://-r:276DB145/  http:///Mmsbpz://-r:276DB14B/msbpz://-r:276DB147/:;msbp://-r:276DB14B/msbpz://-r:276DB149/msbpz://-r:276DB148/:nmsbp://-r:276DB147/msbpz://-r:276DB146/msbpz://-r:276DB145/  http:///Mmsbpz://-r:276DB14B/msbpz://-r:276DB147/:;msbp://-r:276DB14B/msbpz://-r:276DB149/msbpz://-r:276DB148/:nmsbp://-r:276DB147/msbpz://-r:276DB146/msbpz://-r:276DB145/  http:/// FMicrosoft Excel WorksheetBiff8Excel.Sheet.89qOh+'0j X`  %Calculating Control Ratios: QuestionelMicrosoft CorporationtiMicrosoft CorporationtiMicrosoft Excel@W y@7)+@Gh+# s4&" WMFCM (Hdf"+# EMFH$ @    !" !" !  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TT@HAA@LPDer    % #6#% Ld###!??% % " !% %&" WMFC H   g#'%    Ld#9 )!??'% (  Ld#f9#)!??'% (  Ld9#"9 !??'% (  Ld#9f"#9!??RL Tahoma Tahomadhۍ0WXw x\@$0 x\ 0%    T3 +8AA3 LMicrosoft Business Planner       RL Verdana Verdanadhۍ0WXw y\@$0 y\ 0%  T2MYAA2MLhGo to Article:   RL  Verdana Ref Verdana Refw}!w`WXw \@$0 \3 0% RL  Verdana Verdanadhۍ0WXw {\@$0 {\ 0%   RL  Verdana VerdanaDhۍ0WXw n\@$0 n\ D0% % % % " !% %   $\fl  T02^kAA2^&LThe Importance of Monitoring Liquidity  %  % % % % % % " !% %   $g%   T$3WAA3$LCalculating Control Ratios: Question          % %  % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % % " !% %   $g"% % % % % % % % % % % % % % % % %   T2fAA2_L This exercise will test your understanding of the most common control ratios, by asking you to    T2fAA2:Lcalculate them from the accounts of a fictitious business.  T2fAA2ILUsing the Parkwood accounts below, calculate these ratios for both years.  T2AA2Lx(1) The current ratio;T2AA2Lt(2) The quick ratio;T2fAA2EL(3) The average collection period (assuming all sales are on credit); T2fAA2DL(4) Average days' stock held (assuming all sales is finished goods); T 2AA2#L(5) Circulation of working capital;  T2f AA2;LUse the table on the "Worksheet" tab to enteb&WMFCHr your answers.  % % % " !% %   g#% % " !% %   g#' % (     ( &% % Ld!??% % Ld#!??% % Ld!??% % Ld"!??% % Ldf!??'%   ( &% #}6h}% Ld#}f}#}E!??% ( % " !%   g#% " !%   g#'%    ( &% 6g% Ldfg!??% 6#% Ld"#!??% "   #g  '' ' ,#g-  -#- @ !"-- @ !-99- @ !9-JJ- @ !J-[[- @ ![-ll- @ !l-}}- @ !}-- @ !-- @ !-""- @ !"-g- @ !f-##- @ !#-- @ !-""- @ !"-ff- @ !f-  @ !- -- @ !-- @ !- -- @ !-- @ !--Arial-  2  1 -- @ !  2 ( 2 -  - @ !   2 : 3 -::- @ !:  2 K 4  -KK- @ !K  2 \ 5 -\\- @ !\  2 m 6 -mm- @ !m  2 ~ 7 -~~- @ !~  2 8 -- @ !  2  9 -- @ !  2 #A  -- @ !  2 }B  -$$- @ !$  2 C  -- @ !  2 @D  -##- @ !#-"System-'-- ,#g-   @ !) -    @ !)#-    @ ! 9-    @ !9# Tahoma-  .2 3Microsoft Business Planner        Verdana-  2 M2Go to Article:    Verdana Ref-  Verdana-    Verdana-- --'- -  ,lf\$ @2 ^2&The Importance of Monitoring Liquidity  -  - - - - --'- -  ,g$-  =2 3$Calculating Control Ratios: Question          - - --------------------------------------------'--  ,"g$----------------- 2 2_This exercise will test your understanding of the most common control ratios, by asking you to    ^2 2:calculate them from the accounts of a fictitious business.  u2 2IUsing the Parkwood accounts below, calculate these ratios for both years.  (2 2(1) The current ratio;%2 2(2) The quick ratio;o2 2E(3) The average collection period (assuming all sales are on credit); m2 2D(4) Average days' stock held (assuming all sales is finished goods); <2 2#(5) Circulation of working capital;i  `2 2;Use the table on the "Worksheet" tab to enter your answers.  ---'--  ,#g--'--  ,#g-   -- @ !-- @ !#-- @ !-- @ !"-- @ !f-  -}#}h- @ !E}#- -'- ,#g-'- ,#g-   -g- @ !g-#- @ !#-'0C *H 40010 *H 0g +7Y0W03 +70%7)O•0 0 *H ːAZG*?00)ъĽ5ǛSV0  *H 010U VeriSign Trust Network10U VeriSign, Inc.1,0*U #VeriSign Time Stamping Service Root1402U +NO LIABILITY ACCEPTED, (c)97 VeriSign, Inc.0 970512070000Z 991231070000Z010U VeriSign Trust Network10U VeriSign, Inc.1,0*U #VeriSign Time Stamping Service Root1402U +NO LIABILITY ACCEPTED, (c)97 VeriSign, Inc.00  *H 0. h|,-.  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Product Title "Text #Title`&QuestionB WorksheetzSSolution  ;7  ;  ; g& a>Parkwood and Co Fixed AssetsCurrent AssetsNet Current Assets Share CapitalRetained EarningsLong-Term Loan (at 12 per cent)SalesCost of Goods Sold Gross ProfitOperating Profit Loan InterestTax Due on ProfitsProfit and Loss StatementNET ASSETS EMPLOYEDIncome Total IncomeStockDebtorsCashTotal Current Assets ExpenditureSales and MarketingLess Current LiabilitiesAdministrationBank OverdraftGeneral CreditorsTotal ExpenditureTaxTotal Current LiabilitiesProfit Before Tax FINANCED BYProfit After Tax Answers&(5) Circulation of Working Capital (X)#(4) Average Days' Stock Held (Days)((3) The Average Collection Period (Days)(2) The Quick Ratio(1) The Current Ratio.Balance Sheet at 20 January This Year and Last Last Year This YearNet Total AssetsGo to Article: See Also:&The Importance of Monitoring LiquidityUse the table below to fill in your answers to the questions on the "Question" tab. When you have finished, click on the "Solution" tab to check your answers.$Calculating Control Ratios: Solution%Calculating Control Ratios: Worksheet$Calculating Control Ratios: QuestionThe Current RatioThe Quick Ratio or Acid TestCredit Control Stock ControlCirculation of Working CapitalThis exercise will test your understanding of the most common control ratios, by asking you to calculate them from the accounts of a fictitious business. Using the Parkwood accounts below, calculate these ratios for both years. (1) The current ratio; (2) The quick ratio; (3) The average collection period (assuming all sales are on credit); (4) Average days' stock held (assuming all sales is finished goods); (5) Circulation of working capital; Use the table on the "Worksheet" tab to enter your answers.bScroll down to see the answers. Click on a cell, and then look at the formula in the formula bar to see where the information in that cell is drawn from. The formula will show the name of the tab followed by the cell reference in that tab. For example, "Question!G42" is the reference for the figure for operating profit last year on the "Question" tab).Microsoft Business PlannerNote: If you save this template as a workbook, note the workbook's file name and location. To edit the workbook next time, you must open it using Excel. Every time you open this template from Business Planner, a new workbook is created.f Colin Barrow 1998, Accounting: Financial Management for the Small Business, published by Kogan Page.MBD p8v>5Z!" @ @)Y2>  dMbP?_*+% &LDate: &D&x ?  & ^ +2& X <P A= A Y!& !_!(`@/@!&`abY"& "5"(&@/@"& "c !"d@z@( DD !"e@@( DD "f#& #:#*@0p@#&ghiW$& $j#$6 @* %!#&#$kw@* %!#&$& $l $+2W%&mno& %_%(@/L@%W&& &p &+2& &5&(@/@&W'& '5'(@/p@'& '5'( @/@'W(& (5((p@/u@(& (q#(< @* %%'+#(=p@* %%'+(W)& ):)* @0@)&rabs*& *j#*76@. %')&#*;[@. %')&*& *c !*d@- D"D(!*eF@- D"D(*s+&89t&uhif,& ,v!,wv@hi D$D*!,xp@, D$D*,& ,g ,h@i@,&-&89t& -c!-d{@1 D*D,!-eU@1 D*D,-s.& .v,'.w@,DD$D*'.x@@$DD$D*.&y)1W/&z'.& /q /7ɲ@;@/f0& 0S 0'.&{*0W1&4)1& 1|!!1}-@$ D-D/!1~@" D-D/1W2& 252(@/@2&WWWW3& 353(D@/V@3&WWWW 4&j#47@7 %23&#4;@7 %23&4&WWW&5&:*0&WWW&6& 6:6*@0@6&&&&& 7&$7w@"$6$4B$7x@@4$6$4B7&&&&&8&&&&&&&&&9&&&&&&&&&:;<=>?D lVBBBVfBvB0vBBpBr >@<d  2 7FyK yK http:///^yK yK *msbpz://-r:276DB145/^yK yK *msbpz://-r:276DB146/\yK yK (msbp://-r:276DB147/^yK yK *msbpz://-r:276DB148/^yK yK *msbpz://-r:276DB149/\yK yK (msbp://-r:276DB14B/^yK yK *msbpz://-r:276DB147/^yK yK *msbpz://-r:276DB14B/ @ &EMO  dMbP?_*+% &LDate: &D&x&&&&$$$Dl000000000000000>00000 4!4"4#4$4%4n $>&&&&&&&3l!3"#$%drp >@<d2 7FyK yK http:///^yK yK *msbpz://-r:276DB145/^yK yK *msbpz://-r:276DB146/\yK yK (msbp://-r:276DB147/^yK yK *msbpz://-r:276DB148/^yK yK *msbpz://-r:276DB149/\yK yK (msbp://-r:276DB14B/^yK yK *msbpz://-r:276DB147/^yK yK *msbpz://-r:276DB14B/ @ &VS`b  dMbP?_*+% &LDate: &D&x&&&&$$$D^ l000000000000000>~~ 4!4"4#4$4%4n $>&&&&&&&3l!3"#$%drp >@<dccc2 7FyK yK http:///^yK yK *msbpz://-r:276DB145/^yK yK *msbpz://-r:276DB146/\yK yK (msbp://-r:276DB147/^yK yK *msbpz://-r:276DB148/^yK yK *msbpz://-r:276DB149/\yK yK (msbp://-r:276DB14B/^yK yK *msbpz://-r:276DB147/^yK yK *msbpz://-r:276DB14B/