Ratio Analysis

SCENARIO: AgriSteel Heavy Industries manufactures specialized farming machinery. Draft financial statements for the year ended 30 September 20X6 show a draft net profit of $1,200,000. The following adjustments are needed: 1) Closing inventory was valued at cost $450,000, but includes damaged tractors costing $50,000 that can only be sold for $30,000 after $5,000 repair costs. 2) A machine bought for $200,000 on 1 Oct 20X5 was incorrectly charged to repairs. Depreciation is 20% reducing balance. 3) A provision for a legal claim of $80,000 needs to be created. 4) The allowance for receivables needs to increase by $15,000. Assume the final adjusted net profit is $1,240,000 (use this as PBIT for simplicity). If AgriSteel's Capital Employed is $8,000,000, calculate the Return on Capital Employed (ROCE) percentage. (Enter the number only, rounded to one decimal place)

SCENARIO: AgriSteel Heavy Industries manufactures specialized farming machinery. Draft financial statements for the year ended 30 September 20X6 show a draft net profit of $1,200,000. The following adjustments are needed: 1) Closing inventory was valued at cost $450,000, but includes damaged tractors costing $50,000 that can only be sold for $30,000 after $5,000 repair costs. 2) A machine bought for $200,000 on 1 Oct 20X5 was incorrectly charged to repairs. Depreciation is 20% reducing balance. 3) A provision for a legal claim of $80,000 needs to be created. 4) The allowance for receivables needs to increase by $15,000. If AgriSteel's adjusted Current Assets are $1,500,000 and adjusted Current Liabilities are $1,000,000, calculate the Current Ratio. (Enter the number only, e.g., 1.5)

SCENARIO: AgriSteel Heavy Industries manufactures specialized farming machinery. Draft financial statements for the year ended 30 September 20X6 show a draft net profit of $1,200,000. The following adjustments are needed: 1) Closing inventory was valued at cost $450,000, but includes damaged tractors costing $50,000 that can only be sold for $30,000 after $5,000 repair costs. 2) A machine bought for $200,000 on 1 Oct 20X5 was incorrectly charged to repairs. Depreciation is 20% reducing balance. 3) A provision for a legal claim of $80,000 needs to be created. 4) The allowance for receivables needs to increase by $15,000. Using the data from the previous question (Current Assets $1,500,000, Current Liabilities $1,000,000) and knowing the adjusted closing inventory is $425,000, calculate the Quick Ratio (Acid Test). (Enter the number only, rounded to two decimal places)

SCENARIO: AgriSteel Heavy Industries manufactures specialized farming machinery. Draft financial statements for the year ended 30 September 20X6 show a draft net profit of $1,200,000. The following adjustments are needed: 1) Closing inventory was valued at cost $450,000, but includes damaged tractors costing $50,000 that can only be sold for $30,000 after $5,000 repair costs. 2) A machine bought for $200,000 on 1 Oct 20X5 was incorrectly charged to repairs. Depreciation is 20% reducing balance. 3) A provision for a legal claim of $80,000 needs to be created. 4) The allowance for receivables needs to increase by $15,000. What does a declining Quick Ratio over several years indicate about AgriSteel?

SCENARIO: AgriSteel Heavy Industries manufactures specialized farming machinery. Draft financial statements for the year ended 30 September 20X6 show a draft net profit of $1,200,000. The following adjustments are needed: 1) Closing inventory was valued at cost $450,000, but includes damaged tractors costing $50,000 that can only be sold for $30,000 after $5,000 repair costs. 2) A machine bought for $200,000 on 1 Oct 20X5 was incorrectly charged to repairs. Depreciation is 20% reducing balance. 3) A provision for a legal claim of $80,000 needs to be created. 4) The allowance for receivables needs to increase by $15,000. Which user group would be MOST interested in AgriSteel's gearing ratio?