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Performance appraisal

This topic has 3 replies, 2 voices, and was last updated 6 years ago by John Moffat.

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August 22, 2019 at 7:45 pm #528447
garvit
Member
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Revenue 500000
Gross profit 120000
Operating profit 50,000
Loan 60000
Asset turnover 4 times
Calculate gearing ratio?
I think there is no way to calculate equity but in answers the equity is given to be e 125000 and I don’t think there is any formula to calculate equity by dividing revenue and asset turnover ratio.
Thanks sir
August 23, 2019 at 9:43 am #528482
John Moffat
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The asset turnover is 4, and therefore the total net assets = 500,000/4 = 125,000.
August 23, 2019 at 1:12 pm #528519
garvit
Member
- Topics: 41
- Replies: 32
Thanks sir
August 23, 2019 at 2:18 pm #528526
John Moffat
Keymaster
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You are welcome 🙂
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