The bottom-line of the question is basically asking for Gross prot ratio Net prot rate

The bottom-line of the question is basically asking for

• • Gross profit ratio
• • Net profit rate
• • Current ratio -
• • Quick ratio
• • Inventory turnover (assume when calculating average inventory, the Opening Inventory = $0)
• • The average number of days inventory is held

I submitted my answers knowing some were wrong. These are what i got correct/incorrect:

• • Gross profit ratio - 61%.   - CORRECT -
• • Net profit rate - 46%.       - CORRECT-
• • Current ratio - 14.9 : 1       - WRONG -
• • Quick ratio - 12 : 1      - WRONG - 
• • Inventory turnover 2.9.   - CORRECT - 
• • Days inventory is held - 125 days.  - WRONG

These are my submitted financial statements for the business which were approved and came all CORRECT.

Image transcription text

Income statement Balance sheet 3 months ended 30 June 2022 as at 30 June 2022 Sales Revenue (Domestic + Intmational) 35,680.00 Current Assets Less Cost of sales Bank balance 30 June 2022 39,681.00 Purchases 22,160.00 GST Paid 3,187.90 Packaging 754.00 Inventory 9,334.00 Goods available for Sale 22,914 Pre-paid insurance 1,125 53,327.901 Less Closing Inv 13,580 Non-Current Assets Gross Profit from Trading 22,100 Equipment 5,000.00 Less operating expenses Less: Accum Depreciation 250 4,750.00 Marketing 502.00 Fumiture 800 Advertising 480.00 Less: Accum Depreciation 20 780 Delivery costs 982.00 Software 1,800.00 Administration Less: Accum Depreciation 90 1,710.00 7,240.00 Accounting fees 542.00 Total Assets 60,567.90 rent 1,200.00 Order costs 714.00 Current Liabilities Insurance 375.00 GST Collected 3568 Depreciation 360.00 Total Liabilities 3568 Website Maintenance 420.00 Telephone and Intemet 1,007.00 4,618 5,600.00 Owner's Equity Capital Contribution - James 15,000 Net Profit 16,500 Less: Drawings 1,500.00 13,500.00 Add: Share of profit for quarter 5,500.00 19,000.00 Capital Contribution - Leona 15,000.00 Less: Drawings 1,500.00 13,500.00 Add: Share of profit for quarter 5,500 19,000.00 Capital Contribution - Leona 15,000.00 Less: Drawings 1,500 13,500 Cash flow statement 5,500 19,000 3 months ended 30 June 2022 Total Owner's Equity 57,000.00 Cash flows from Operating Activities Net income 16,500.00 GST Collected 3,568.00 Add: Depreciation expense of non-current assets 360 GST Paid -3,187.00 Closing inventory - increase in inventory 9,334.00 Net cash from Operating Activities 7,907 Cash flows from Investing Activities Payment of assets -2600 Pre-paid insurance 1,125.00 Net cash from Investing Activies 3,725.00 Cash flow from Financing Activities Capital contributions 40,000.00 Drawings 4,500 Net cash from Financing Activities 35,500 Net Increase/Decrease for the period 39,681 Add: Cash and cash equivalents at 1 July 2021 Cash and cash equivalents at 30 June 2022 39,681
 

Transcribed Image Text:

Income statement 3 months ended 30 June 2022 Balance sheet as at 30 June 2022 Sales Revenue (Domestic + Intmational) Less Cost of sales Purchases Packaging Goods available for Sale Less Closing Inventory Gross Profit from Trading Less operating expenses Marketing 502.00 Advertising 480.00 Delivery costs 982.00 Administration Accounting fees 542.00 rent 1,200.00 Order costs 714.00 22,160.00 S 35,680.00 Current Assets Bank balance 30 June 2022 GST Paid 754.00 22,914 Inventory Pre-paid insurance 39,681.00 3,187.90 9,334.00 1,125 53,327.90 13,580 22,100 Non-Current Assets Equipment Less: Accum Depreciation Fumiture 5,000.00 250 4,750.00 800. Less: Accum Depreciation Software Less: Accum Depreciation Total Assets Current Liabilities 20 780 1,800.00 90 1,710.00 7,240.00 60,567.90 Insurance 375.00 GST Collected Depreciation Website Maintenance 360.00 420.00 Telephone and Intemet 1,007.00 4,618 5,600.00 Total Liabilities Owner's Equity 3568 3568 Capital Contribution - James 15,000 Net Profit 16,500 Less: Drawings 1,500.00 Add: Share of profit for quarter 13,500.00 5,500.00 19,000.00 Capital Contribution - Leona 15,000.00 Less: Drawings 1,500.00 13,500.00 Add: Share of profit for quarter 5,500 19,000.00 Capital Contribution - Leona 15,000.00 Less: Drawings 1,500 13,500 Cash flow statement 3 months ended 30 June 2022 5,500 Total Owner's Equity 19,000. 57,000.00 Cash flows from Operating Activities Net income GST Collected 16,500.00 3,568.00 Add: Depreciation expense of non-current assets GST Paid 360 -3,187.00 Closing inventory increase in inventory -9,334.00 Net cash from Operating Activities 7,907 Cash flows from Investing Activities Payment of assets -2600 Pre-paid insurance -1,125.00 Net cash from Investing Activies -3,725.00 Cash flow from Financing Activities Capital contributions 40,000.00 Drawings 4,500 Net cash from Financing Activitiies 35,500 Net Increase/Decrease for the period 39,681 Add: Cash and cash equivalents at 1 July 2021 Cash and cash equivalents at 30 June 2022 39,681 Income statement 3 months ended 30 June 2022 Balance sheet as at 30 June 2022 Sales Revenue (Domestic + Intmational) Less Cost of sales Purchases Packaging Goods available for Sale Less Closing Inventory Gross Profit from Trading Less operating expenses Marketing 502.00 Advertising 480.00 Delivery costs 982.00 Administration Accounting fees 542.00 rent 1,200.00 Order costs 714.00 22,160.00 S 35,680.00 Current Assets Bank balance 30 June 2022 GST Paid 754.00 22,914 Inventory Pre-paid insurance 39,681.00 3,187.90 9,334.00 1,125 53,327.90 13,580 22,100 Non-Current Assets Equipment Less: Accum Depreciation Fumiture 5,000.00 250 4,750.00 800. Less: Accum Depreciation Software Less: Accum Depreciation Total Assets Current Liabilities 20 780 1,800.00 90 1,710.00 7,240.00 60,567.90 Insurance 375.00 GST Collected Depreciation Website Maintenance 360.00 420.00 Telephone and Intemet 1,007.00 4,618 5,600.00 Total Liabilities Owner's Equity 3568 3568 Capital Contribution - James 15,000 Net Profit 16,500 Less: Drawings 1,500.00 Add: Share of profit for quarter 13,500.00 5,500.00 19,000.00 Capital Contribution - Leona 15,000.00 Less: Drawings 1,500.00 13,500.00 Add: Share of profit for quarter 5,500 19,000.00 Capital Contribution - Leona 15,000.00 Less: Drawings 1,500 13,500 Cash flow statement 3 months ended 30 June 2022 5,500 Total Owner's Equity 19,000. 57,000.00 Cash flows from Operating Activities Net income GST Collected 16,500.00 3,568.00 Add: Depreciation expense of non-current assets GST Paid 360 -3,187.00 Closing inventory increase in inventory -9,334.00 Net cash from Operating Activities 7,907 Cash flows from Investing Activities Payment of assets -2600 Pre-paid insurance -1,125.00 Net cash from Investing Activies -3,725.00 Cash flow from Financing Activities Capital contributions 40,000.00 Drawings 4,500 Net cash from Financing Activitiies 35,500 Net Increase/Decrease for the period 39,681 Add: Cash and cash equivalents at 1 July 2021 Cash and cash equivalents at 30 June 2022 39,681