Skip to content
Sign inRegister
ACCA exam results — Are you ready?Chat about it >>

Ask the Tutor ACCA MA

Performance appraisal

GGarvit6y ago
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
John MoffatJohn MoffatTutor6y ago#1
The asset turnover is 4, and therefore the total net assets = 500,000/4 = 125,000.
GGarvit6y ago#2
Thanks sir
John MoffatJohn MoffatTutor6y ago#3
You are welcome :-)
This topic is locked — no new replies.