Following are the financial statements of AB Ltd. for 2019. Balance sheet (S in millions) Income...

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Following are the financial statements of AB Ltd. for 2019. Balance sheet (S in millions) Income statement (S in milllons) Assets 2019 Liabilities and 2019 2019 owners' equity Current liabilities: Current assets: Sales 3,400 Accounts payable Bills payable Cash Cost of goods sold Office and selling 200 400 1,200 Accounts receivable s00 100 600 Inventory Total current expenses 400 500 liabilities Depreciation 102 Total current assets 1.100 Long-term liabilities: Earnings before interest and taxes 1,498 Long-term debt 200 Interest expense 10 Total long-term liabilities Fixed assets: 200 Earnings before taxes 1,488 2 400 Shareholders' funds: Property, plant, and equipment Less: Accumulated depreciation Taxes 607 Net income 881 2.100 Equity share capital (si per share) Reserves & Surplus 200 Dividends 635 Net fixed assets 300 Transfer to reserves and surplus 500 246 Total owners' equity 70 Other information Number of shares Outstanding (millions) Price per share 200 1400 Total liability and owners' equity Total assets 1,400 7.31 A. From the aforementioned table, calculate the following: 1. Current Ratio 2. Acid-Test Ratio 3. Receivables Turnover 4. Inventory turnover 5. Debt Ratio 6. Equity Ratio 7. Debt to Equity Ratio 8.Times Interest Earned 9. Gross Profit Rate 10.Operating Profit Margin 11. Net Profit Margin 12. Return on Assets Following are the financial statements of AB Ltd. for 2019. Balance sheet (S in millions) Income statement (S in milllons) Assets 2019 Liabilities and 2019 2019 owners' equity Current liabilities: Current assets: Sales 3,400 Accounts payable Bills payable Cash Cost of goods sold Office and selling 200 400 1,200 Accounts receivable s00 100 600 Inventory Total current expenses 400 500 liabilities Depreciation 102 Total current assets 1.100 Long-term liabilities: Earnings before interest and taxes 1,498 Long-term debt 200 Interest expense 10 Total long-term liabilities Fixed assets: 200 Earnings before taxes 1,488 2 400 Shareholders' funds: Property, plant, and equipment Less: Accumulated depreciation Taxes 607 Net income 881 2.100 Equity share capital (si per share) Reserves & Surplus 200 Dividends 635 Net fixed assets 300 Transfer to reserves and surplus 500 246 Total owners' equity 70 Other information Number of shares Outstanding (millions) Price per share 200 1400 Total liability and owners' equity Total assets 1,400 7.31 A. From the aforementioned table, calculate the following: 1. Current Ratio 2. Acid-Test Ratio 3. Receivables Turnover 4. Inventory turnover 5. Debt Ratio 6. Equity Ratio 7. Debt to Equity Ratio 8.Times Interest Earned 9. Gross Profit Rate 10.Operating Profit Margin 11. Net Profit Margin 12. Return on Assets

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Answers 1 Current Ratio The current ratio is a liquidity ratio that measures a companys ability to pay shortterm obligations or those due within a year It is also called as working capital ratio It is ... View the full answer