Wellness Resort Company has given you the following financial statements. (Statement of comprehensive income for 2021 and statement of financial position for 2020 and 2021).

 Based on the above information, answer all the questions in this section. (Show your workings in tabular format clearly, and round the figures to 2 decimal places)

1. Calculate the following financial ratios for the year of 2021. (Show workings)

 

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Wellness Resort Company Statements of Comprehensive Income (in dollars) for the year ended 31 Dec 2021 Sales Cost of sales Gross profit Operating Expenses Salaries and Wages Rent Utilitites Operating income Interest expense Income before income taxes Income taxes Net income 327,000 278,000 166,000 1,550,000 552,000 998,000 771,000 227,000 154,000 73,000 14,600 58,400 Wellness Resort Company Statements of Comprehensive Income (in dollars) for the year ended 31 Dec 2021 Sales Cost of sales Gross profit Operating Expenses Salaries and Wages Rent Utilitites Operating income Interest expense Income before income taxes Income taxes Net income 327,000 278,000 166,000 1,550,000 552,000 998,000 771,000 227,000 154,000 73,000 14,600 58,400

Answer rating: 100% (QA)

Answer to the Question Calculate financial ratios for the year of 2021 Requirement 1 Computation of Current Ratio 1 Current Ratio Numerator Denominato... View the full answer