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    Sujay Kaippilly Shibu provided feedback to Justo Trudo on the company's recent financial report. The summary included calculations of the company's average profit margin at 9.8%, return on assets at 8.7%, average total assets of $1,824,827.59, return on equity at 9%, and average collection period of 38 days based on an accounts receivable turnover rate of 9.6.

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    Sujay Kaippilly Shibu provided feedback to Justo Trudo on the company's recent financial report. The summary included calculations of the company's average profit margin at 9.8%, return on assets at 8.7%, average total assets of $1,824,827.59, return on equity at 9%, and average collection period of 38 days based on an accounts receivable turnover rate of 9.6.

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    1 views2 pages

    Accounts Assigment

    Uploaded by

    ks.sujay81
    Sujay Kaippilly Shibu provided feedback to Justo Trudo on the company's recent financial report. The summary included calculations of the company's average profit margin at 9.8%, return on assets at 8.7%, average total assets of $1,824,827.59, return on equity at 9%, and average collection period of 38 days based on an accounts receivable turnover rate of 9.6.

    Copyright:

    © All Rights Reserved
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    of 2

    To: Justo Trudo

    From: Sujay Kaippilly Shibu


    Date: 24 October 2023
    Subject: Feedback on the issue

    It considers the evident business facts while perusing the company's most recent financial report.
    Average profit of the company:

    Profit margin = net income/sales revenue


    9.8 = net income/1,620,000
    net income = 1,620,000*9.8%
    =158760
    R.O.A = Net income/ Average total assets
    8.7% = 1,58,760/ Average total assets
    Average total assets = 1,58,760*8.7%
    =1,824,827.59
    Return on equity = net income / avg. total shareholders’ equity
    9% = 1580760/Avg.total shareholders equity
    = 1764000

    Average collection period = 365 / account receivable turnover


    38 = 365/ account receivable turnover
    =9.6
    Account receivable turnover = credit sales/5300
    Credit sales = 9.6*53000
    = 508800

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