Calculate quick ratio and net profit ratio . Industry average ratios are provided for you to make
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Question:
Calculate quick ratio and net profit ratio .
- Industry average ratios are provided for you to make comparisons
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Income statement
Trinity Batteries Ltd | ||
$ | $ | |
Sales | 9,500,000 | |
Cost of Goods Sold | 1,200,000 | |
Gross Profit | 8,300,000 | |
Operating Expenses | ||
Sales Salaries Expense | 400,000 | |
Office Salaries Expense | 450,000 | |
Advertising Expense | 350,000 | |
Office Supplies Expense | 328,000 | |
Rent Expense | 820,000 | |
Depreciation Expense | 280,000 | |
Insurance expense | 250,000 | |
Utilities expense | 292,000 | 3,170,000 |
Operating Profit/EBIT | 5,130,000 | |
Interest expenses | 270,000 | |
Profit before tax | 4,860,000 | |
Tax expenses | 360,000 | |
Net profit | 4,500,000 |
balance sheet
Trinity Batteries Ltd | ||
Current Assets | $ | $ |
Bank | 1,050,000 | |
Accounts Receivable | 4,500,000 | |
Inventory | 2,950,000 | 5,845,000 |
Non-Current Assets | ||
Equipment | 13,100,000 | |
Land and Buildings | 27,000,000 | |
Fixture | 2,900,000 | 43,000,000 |
Total Assets | 48,845,000 | |
Current Liabilities | ||
GST Collected | 800,000 | |
Accounts Payable | 5,200,000 | |
Less :GST Paid | -350,000 | 5,650,000 |
Non-Current Liabilities | ||
Mortgage | 27,000,000 | |
Total Liabilities | 32,650,000 | |
Net Assets | 16,195,000 | |
Equity | 18,850,000 | |
Capital | 15,000,000 | |
Less: Dividends Paid | 650,000 | |
Net Profit | 4,500,000 |
Related Book For
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