problem 1: As a Bank employee, you are given with the following Financial Statements of Marks Ltd. which had made an application for a loan. They refer to the Financial Years ended 31st December 2011 and 2012 correspondingly.

Required:

Compute the following for years 2011 and 2012 in respect of Marks Ltd:

a) Gross Profit as a percentage of Sales
b) Net Profit as a percentage of Sales
c) Current Ratio
d) Quick Ratio;
e) Non Current Assets Turnover
f) Inventory Turnover
g) Accounts Payable Period (Days)
h) Accounts Receivable Period (Days)
i) Gearing Ratio; and
j) Return on Capital Employed

problem 2: List down four user groups of Financial Statements and Accounting Information and in brief describe the specific information each group would be interested in.

problem 3: Describe what you understand by the term Cost Centre.