BUSF_A01.qxd

Appendix 4 • Suggested answers to selected problem questions

Return on capital employed

×100%

×100% 20.0%

4,618 ×100% 27.8%

16,600

2,100

10,474

Operating profit

Share capital +reserves +non-current liabilities

Last year This year

Operating profit margin

×100%

×100% 7.4%

×100% 5.1%

Current ratio

1.95 : 1

1.56 : 1

Acid test ratio

1.09 : 1

0.84 : 1

Inventories turnover period

×365 days

× 365 74 days

(^83) × 365 72 days
423
68
335
Inventories
Inventories used
181 − 83
116
154 − 68
79
Current assests less inventories
Current liabilities
181
116
154
79
Current assests
Current liabilities
31
602
37
499
Operating profit
Sales revenue
Last year This year
3.5 Prospect plc
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