ACC 12 TERM 1 WEEK 8 and 9 Financial accounting of companies – analysis and interpretation of financial statements

Financial accounting of companies – analysis and interpretation of financial statements

Analysis and interpretation of Income Statement, Balance Sheet and Notes
Revision of the following financial indicators:
• gross profit on sales
• gross profit on cost of sales
• net profit on sales
• operating expenses on sales
• operating profit on sales
• current ratio
• acid test ratio
• stock turnover rate
• stock holding period
• average debtors’ collection period
• average creditors’ payment period
• solvency ratio.
Introduction and coverage of the following financial indicators:
• debt-equity ratio (gearing)
• return on shareholders’ equity
• return on total capital employed
• net asset value per share
• dividends per share
• earnings per share