- James and Juan Fencing Ltd. (JJF)
(a) State two features of a privately held company. [2]
(b) (i) Using the data in Table 1, calculate the debtor days ratio (number of days) for JJF (no working required). [1]
(ii) JJF’s capital employed at year end was $2 million. Using the data in Table 1, calculate the gearing ratio for JJF (no working required). [1]
(iii) At the end of the financial year, JJF’s creditors are 50% of debtors. Using the data in Table 1, calculate the creditor days ratio (number of days) for JJF (show all your working). [2]
(iv) JJF’s opening stock (as of 1 October 2023) was $750 000. Using the data in Table 1, calculate the stock turnover (number of days) ratio for JJF (show all your working). [2]
(c) Explain the impact that one of James’s planned changes for 2025 could have on an efficiency ratio. [2]