Accounting

IV - Problem/Catculation (Points, 26) The following data is extracted from the financial statements prepared by " Company for the year 2019. Income Statement NB - Out of the total sales $300000 was recorded as cash sales. Required: Calculate the following ratios and give brief explanation for thos required (") only. i) Liquidity Ratios (6 points) a. Current Ratios* (if the Industry average is 2.5 times) b. Acid-test Ratio ii) Efficiency Ratios ( 6 points) a. Inventory Turnover b. Receivable Turnover" ( the previous year the turnover was 8 times) iii) Profitability Ratios (8 points) a. Gross Profit Margin (If the Industry average is 35% what do you say about the "ABC" Company and what measures should they take to increase the percentage) b. Operating Profit Margin c. Net Profit Margin iv) Leverage Ratios ( 6 points) a. Debt to Asset Ratio" (In general how much percentage is safe and accepted in Accounting) b. Interest Coverage Ratio