Task: Students will be required to use the financial ratio analysis question available on Moodle and in the subject outline. Ratio analysis and report The following information relates to the business of Chef One, and the owner is concerned about the profitability and financial structure of his business at 30 June 2018, especially since the bank is requiring repayment of the business’s overdraft. Inventory at 1 July 2016 was $22 500. Required (a) Calculate the following ratios for 2017 and 2018: profit margin return on proprietor’s capital current ratio quick ratio equity ratio inventory turnover. (b) Write a report to the owner highlighting strengths and areas of concern in relation to the profitability, liquidity and financial stability of the business including recommendations to improve areas of concern. (c) Identify the cash flow ratios that would be useful to calculate to assist K. Pastry to more fully understand the financial health of the business.
Subject Name: Finance
Level: Undergraduate
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