Question 7: Analyse the Financial Statement below and make comments.

Village Shipping Inc. Income Statement Horizontal Analysis % Change For the years ending December 31, 2014 2015 from and December 31, 2015 2014 2015 2014 Sales 500,000 475,000 -5.00% Cost of goods sold 269,000 265,000 -1.49% Gross profit 231,000 210,000 -9.09% Wages 163,000 154,000 -5.52% Repairs 4,150 5,800 39.76% Rent 12,000 13,000 8.33% Taxes 17,930 16,940 -5.52% Office expenses 587 1,023 14.14% Total expenses 197,667 190,763 -3.49% Net Income 33,333 19,237 -42.29%Bunny Backers Inc. Income Statement for the Year Ended 31st Dec. 20XX Revenues 120,000 Cost of goods sold 40,000 Gross profit 80,000 Other income 40,000 Selling costs 20,000 Administrative costs 30,000 Other expenses 10,000 Profit before tax 60,000 Taxes 21,000 Net Profit 39,000BUNNY BACKERS Inc. Balance sheet 31-Dec-20XX Assets Liabilities Current Assets Current Liabilities Cash 20,000 Accounts payable 35,000 Petty cash 5,000 Wages payable 25,000 Accounts receivable 35,000 Interests payable 10,000 Inventory 70,000 Unearned revenues 8,000 Total current assets 130,000 Total current liabilities 78,000 Property and equipment Long term liabilities Buildings 150,000 Notes payable 60,000 Land 10,000 Total Liabilities 138,000 Equipment 80,000 Accumulated depreciation -20,000 Equity Total property and equipment 220,000 Common stock 240,000 Retained earnings 80,000 Other assets 8,000 Total stockholder's equity 220,000 Total Assets 358,000 Total liabilities and equity 358,000The following Trading and Prot and Loss Account of Fantasy Ltd. for the sear 31-3-3110 is given To {ipening Stool: " Purchases Carriage and Freight Wages Gross Prot bid To Administration expenses By |Eiross Prot hid " Selling and Dist. expenses " Nonoperating incomes: " Nonoperating expenses " Interest on Securities " Financial Expenses " Dividend on shares Net Prot cfd " Prot on sale of shares Calculate: 1. Gross Prot Ratio 1. Expenses Ratio 3. Operating Ratio 1. Net Prot Ratio 5. Dperating {Net} Prot Ratio I5. Stock Turnover Ratio. The Balance Sheet of Punjab Auto Limited as on 31-12-2002 was as follows: Particular RS. Particular RS. Equity Share Capital 40,000 Plant and Machinery 24,000 Capital Reserve 8,000 Land and Buildings 40,000 8% Loan on Mortgage 32,000 Furniture & Fixtures 16,000 Creditors 16,000 Stock 12,000 Bank overdraft 4,000 Debtors 12,000 Taxation: Investments (Short-term) 4,000 Current 4,000 Cash in hand 12,000 Future 4,000 Profit and Loss A/c 12,000 1,20,000 1,20,000