Snowy Alps Ltd reported the following information in its financial statements: 2021 2020 $ $ Sales Revenue
Question:
Snowy Alps Ltd reported the following information in its financial statements:
2021 | 2020 | |
$ | $ | |
Sales Revenue | 852,500 | 650,000 |
Cost of Sales | 576,000 | 474,500 |
Net Profit | 152,000 | 138,000 |
Total Current Assets | 175,000 | 154,400 |
Total Property, Plant & Equipment | 720,200 | 630,000 |
Total Current Liabilities | 80,100 | 97,200 |
Total Non-current Liabilities | 220,200 | 125,900 |
Retained Earnings | 356,000 | 234,000 |
General Reserve | 12,000 | 5,000 |
Share Capital | 430,000 | 430,000 |
Included in total assets in 2020 is inventory of $40,300 and the company has no prepayments in 2020 or 2021.
Required:
Using the above information calculate the following financial ratios to two decimal places. Provide a formula and show your workings for each ratio.
a) Gross profit margin for 2021
b) Asset Turnover for 2021
c) Quick Ratio for 2020
d) Return on Ordinary Shareholders Equity for 2021
Business Statistics
ISBN: 978-0321925831
3rd edition
Authors: Norean Sharpe, Richard Veaux, Paul Velleman