profit & Loss Accounts and Balance sheet.

... Mr. Han's business year ending 2005 Mr. Han's business year ending 2006 Industry Averages Mr. Han's business year ending 2007 Return on Capital Employed 41% 45% 37% 11,325 15,575 + 8360 - 1610 = 50% Gross Profit % 44% 45% 39% 27,600 63,600 = 43% Net Profit % 28% 27% 30% 11,325 63,600 = 17.8% Stock Turnover 44 days 56 days 62 days 7700+7,400 36,000 = 76 days Debtor payment period 0.89 days 0.88 days 0.9 days 150 63,600 = 0.86 days Creditor payment period 5.7 days 13 days 12 days 1610 63,600 = 9.2 days Current Ratio 4.8:1 4.9:1 4.5:1 8360 1610 = 5.1:1 Acid Test 1.1:1 0.89:1 1:1 8360 - 7400 1610 = 0.6:1 The results that are shown above are accurately calculated. The figures are taken from Mr. Han's profit & Loss Accounts and Balance sheet 2007. The table signifies that Mr. Han's business for the year ending 2007. Return on Capital Employed: - Return on capital employed in the year 2005 was only 41%, it then went up in the following year by 4% and again in the year 2007 it went up to 50%. This signifies that the ratio has been improved. This ratio is improved because the business

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