Rate of stock turnover, Gross profit margin, Current ratio, Acid test ratio, Return on capital employed.

Here are the calculations for the required ratios: a) Rate of stock turnover Step 1: Calculate the average stock. Average Stock = Opening Stock + Closing Stock2 Average Stock = (\63,000 + \50,300)/(2) = (\113,300)/(2) = \56,650 Step 2: Calculate the rate of stock turnover. Rate of Stock Turnover = Cost of Goods SoldAverage Stock Rate of Stock Turnover = (\227,700)/(\56,650) ≈ 4.02 times The rate of stock turnover is 4.02 times. b) Gross profit margin Step 1: Use the formula for gross profit margin. Gross Profit Margin = Gross ProfitSales × 100\% Gross Profit Margin = (\190,650)/(\418,350) × 100\% ≈ 45.57\% The gross profit margin is 45.57\%. c) Current ratio Step 1: Calculate total current assets. Current Assets = Stock + Debtors + Cash Current Assets = \50,300 + \32,500 + \18,350 = \101,150 Step 2: Use the formula for the current ratio. Current Ratio = Current AssetsCurrent Liabilities Current Ratio = (\101,150)/(\41,750) ≈ 2.42:1 The current ratio is 2.42:1. d) Acid test ratio Step 1: Calculate quick assets (current assets excluding stock). Quick Assets = Current Assets - Stock Quick Assets = \101,150 - \50,300 = \50,850 Step 2: Use the formula for the acid test ratio. Acid Test Ratio = Quick AssetsCurrent Liabilities Acid Test Ratio = (\50,850)/(\41,750) ≈ 1.22:1 The acid test ratio is 1.22:1. e) Return on capital employed Step 1: Calculate capital employed. Capital Employed = Capital + Net Profit - Drawings Capital Employed = \110,500 + \40,000 - \21,400 = \129,100 Step 2: Use the formula for return on capital employed. Return on Capital Employed = Net ProfitCapital Employed × 100\% Return on Capital Employed = (\40,000)/(\129,100) × 100\% ≈ 30.98\% The return on capital employed is 30.98\%$. Send me the next one 📸