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Acct3604 the council of community colleges of jamaica

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ACCT3604The Council of Community Colleges of JamaicaPage35A more immediate concern is the deterioration in the payment period to our company.Breadline must be contacted immediately to find out why the account is so late in beingpaid. It would not be advisable to allow any further trading on credit until the account iswithin the stated credit terms. Enquiries should be made as to why our internal creditcontrol procedures have allowed the situation to develop this far.
ACCT3604The Council of Community Colleges of JamaicaPage36AppendixPerformance ratios20x120x0Return on capital employed(1,970+10)/3,700+500)*10047.1%(1,025/2500)*10041.0%Net assets turnover(8,500/4,200)2.0 times(6,500/2,500)2.6 timesGross profit margin (see below)(2,550/8,500)*10030%(1,690/6,500)*10026%Net profit (after tax) margin(1,500/8,500)*10017.6%(850/6,500)*10013.1%Current ratio (1,330/1,250)1.1:1(1,090/590)1.8:1Quick ratio (960/1,250)0.77:1(850/590)1.4:1Inventory holding period(370/5,950)*36523 days(240/4,810)*36518 daysAccounts receivable collection period(960/8,500)*36541 days(600/6,500)*36534 daysAccounts payable payment period(See below) (Excluding Judicious)(1,030-340)/5,950-1,200))(590-100)/*36553 days(4,810-800)*36545 daysJudicious payment period(340/1,200)*365103 days(100/800)*36546 daysGearing (500/4,200)10012 %The 2% loan note ha been treated as a financing item in calculating the net asset turnover.The accounts payable payment period is based on the cost of sales as the purchases figureis not available.
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Balance Sheet, Council of Community Colleges of Jamaica

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