Business studies

FINANCIAL PLANNING AND MANAGEMENT ASSESSMENT 3 [A] i)<Tab/>Current Ratio = $ 200 000 100 000 = 2:1 ii)<Tab/>Quick Liquidity Ratio = $ 200 000 - 10 000 100 000 - 20 000 = 2.38:1 iii) Debt to Equity Ratio = $ 200 000 3 000 000 = 0.07:1 iii)<Tab/>Gross Profit = $ 500 000 - $ 200 000 = $ 300 000 Gross Profit Ratio = $ 500 000 - 200 000 X 100 50 000 = 60:1 v) Net Profit Ratio = $ 50 000 X 100 500 000 = 10:1 vi)<Tab/>Return on Assets = $ 50 000 100 000 = 50:1 [B] i)<Tab/> Balance Sheet - See Over Page ii) iii) [C] i)&…

…ii)<Tab/>The main sources of this increase were receipts from trade and other debtors. iii)<Tab/>The main source of cash for Telstra is receipts from trade and other debtors. iv)<Tab/>Payments of accounts payable and payments to employees use most of this cash. v)<Tab/>The increase in Telstra's cash proportion over the year was $218 million.