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FMA101 FIM262 (STADIO) Assignment 1 (QUALITY ANSWERS) Semester 1 2024 - DUE 22 April 2024 $13.83
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FMA101 FIM262 (STADIO) Assignment 1 (QUALITY ANSWERS) Semester 1 2024 - DUE 22 April 2024

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This document contains workings, explanations and solutions to the FMA101 FIM262 Assignment 1 (QUALITY ANSWERS) Semester 1 2024 - For assistance call or Whats-App us on 0.6.8...8.1.2...0.9.3.4........ Question 1 (28 marks) Stealers (Pty) Ltd is a company that provides a wide variety of steel prod...

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FMA101
Assignment 1 Semester 1 2024
STADIO
Due Date: 22 April 2024



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• Detailed explanations and/ or calculations
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, QUESTION 1

1.1.

The current ratio is calculated as current assets divided by current liabilities:




Current ratio = Current assets / Current liabilities

Current ratio = 4,,340

Current ratio = 3.13




The quick ratio (acid-test ratio) is calculated as (current assets - inventory)
divided by current liabilities:




Quick ratio = (Current assets - Inventory) / Current liabilities

Quick ratio = (4,200 - 2,100) / 1,340

Quick ratio = 2,,340

Quick ratio = 1.57




The inventory turnover ratio is calculated as cost of goods sold divided by
average inventory:




Inventory turnover ratio = Cost of goods sold / ((Inventory for 2023 + Inventory
for 2022) / 2)

Inventory turnover ratio = 2,275 / ((2,100 + 1,300) / 2)

Inventory turnover ratio = 2,,700

Inventory turnover ratio = 1.34



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