Gross Profit Margin: Gross Profit Margin = (Revenue - Cost of Goods Sold) / Revenue Revenue = Sales Revenue + Service and Repair Income + Discount Received Revenue = $33,230.00 + $1,515.45 + $201.82 = $34,947.27 Cost of Goods Sold = $37,295.00 Gross Profit Margin = ($34,947.27 - $37,295.00) / $34,947.27 Gross Profit Margin -6.73% b. Net Profit Margin: Net Profit Margin = Net Profit / Revenue Net Profit = ($9,347.14) Net Profit Margin = ($9,347.14) / $34,947.27 Net Profit Margin -26.75% 2. Liquidity Ratio: a. Current Ratio: Current Ratio = Current Assets / Current Liabilities Current Assets = Total Current Assets = $67,106.75 Current Liabilities = Total Current Liabilities = $9,363.32 Current Ratio = $67,106.75 / $9,363.32 Current Ratio 7.16 3. Operating Efficiency Ratio: a. Inventory Turnover Ratio: Inventory Turnover Ratio = Cost of Goods Sold / Average Inventory Average Inventory = (Beginning Inventory + Ending Inventory) / 2 Average Inventory = ($24,235.00 + $24,235.00) / 2 Average Inventory = $24,235.00 Inventory Turnover Ratio = $37,295.00 / $24,235.00 Inventory Turnover Ratio 1.54 4. Financial Stability Ratio: a. Debt-to-Equity Ratio: Debt-to-Equity Ratio = Total Liabilities / Total Equity Total Liabilities = Total Current Liabilities + Total Non-Current Liabilities Total Liabilities = $9,363.32 + $18,000.00 = $27,363.32 Total Equity = Owner's Capital + Retained Earnings Total Equity = $50,000.00 + $29,719.00 = $79,719.00 Debt-to-Equity Ratio