Financial management revision question and answer

CPA-Financial-Management-Section-3 Revision kit

(b) The following information represents the financial position and financial results of AMETEX Limited for the year ended 31 December 2002.

Additional information:
1. The company‚Äüs ordinary shares are selling at Sh.20 in the stock market.
2. The company has a constant dividend pay out of 10%.

Determine the following financial ratios:
(i) Acid test ratio.
(ii) Operating ratio
(iii) Return on total capital employed
(iv) Price earnings ratio.
(v) Interest coverage ratio
(vi) Total assets turnover

(c) Determine the working capital cycle for the company.


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