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  • ACC117

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    Deeaan21 Deeaan03
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    The document contains calculations of six financial ratios: 1) The current ratio is 1, indicating the company has enough current assets to cover its current liabilities. 2) The quick ratio is 0.70, meaning the company may face some challenges meeting short-term obligations with liquid assets alone. 3) The inventory turnover ratio could not be calculated due to missing values.

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    The document contains calculations of six financial ratios: 1) The current ratio is 1, indicating the company has enough current assets to cover its current liabilities. 2) The quick ratio is 0.70, meaning the company may face some challenges meeting short-term obligations with liquid assets alone. 3) The inventory turnover ratio could not be calculated due to missing values.

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    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
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    5 views2 pages

    ACC117

    Uploaded by

    Deeaan21 Deeaan03
    The document contains calculations of six financial ratios: 1) The current ratio is 1, indicating the company has enough current assets to cover its current liabilities. 2) The quick ratio is 0.70, meaning the company may face some challenges meeting short-term obligations with liquid assets alone. 3) The inventory turnover ratio could not be calculated due to missing values.

    Copyright:

    © All Rights Reserved
    Download as DOCX, PDF, TXT or read online from Scribd
    Flag for inappropriate content
    of 2

    I.

    Current ratio Current Asset / Current


    Liability

    = 760 / 760
    =1
    II. Quick ratio (Current Asset – Closing
    Inventory – Prepayments) /
    Current Liability

    = (760 – 224 – 2) / 760


    = 0.70
    III. Inventory turnover Cost of goods sold /
    ratio Average Stock

    =
    =
    IV. Account receivable Debtor’s balance / Net credit
    collection period sales X 365 days

    = 17,176 / (609,200 x 35%)


    x 365 days
    =29.4 days

    V. Gross profit Gross Profit / Net Sales

    = 484,248 / 609,200
    = 0.79

    VI. Net profit margin Net Profit / Net Sales

    = 178,802 / 609,200
    = 0.29

    I. Current ratio Current Asset / Current


    Liability

    = 64,824 / 36,656
    = 1.77
    II. Quick ratio (Current Asset – Closing
    Inventory – Prepayments) /
    Current Liability

    = (64,824 – 28,738 –
    4,000) / 36,656
    = 0.88
    III. Inventory turnover Cost of goods sold /
    ratio Average Stock

    = 124,952 / ((33,540 +
    28,738) / 2)
    = 4.013
    IV. Account receivable Debtor’s balance / Net credit
    collection period sales X 365 days

    = 17,176 / (609,200 x 35%)


    x 365 days
    =29.4 days

    V. Gross profit Gross Profit / Net Sales

    = 484,248 / 609,200
    = 0.79

    VI. Net profit margin Net Profit / Net Sales

    = 178,802 / 609,200
    = 0.29

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