The Tristar Company

Income Statement for the Year Ended 30th April 2011

$ $ $ $
Sales 209
Less: Cost of Goods Sold
Opening Inventory 30,650
Add: Purchases 111,200
Less: Purchases Return -4750 106,450
Closing Inventory 28100 137,100
Cost of Goods Available -28100 109
Less: Closing Stock
Gross Profit 100

Less: Expenses
Heat and Light 3890
Salaries and Wages 42,100
General Expenses (16750 -4200) 16,750
Less: All Expenses -4200 12,550
Marketing Expenses 12,050
Rent 7500
Add: Outstanding 2500 10,000
Provision For Doubtful Debt 750
Depreciation:
Depreciation of M.V[0.2*(16000 -3200) 16,000 12,800 2560
Depreciation of Fixtures& Fittings (30000*0.1) 30,000 3000 86
Discount Received 5300 -5
Adjusted Expenses 81
Net Profit 18

Appropriation Account
Net Profit 18
Add Interest on Drawings
John 10,000 500
David 10,000 500
Sue 12,000 600 1
20

Less: Interest on Capital

John 40,000 1600
David 35,000 1400
Sue 25,000 1000
4
 16

Profit Appropriation
John 40 6
David 40 6
Sue 20 3

Current Account
John David Sue John David Sue
Balance b/d 1000 Balance b/d 2500 1500
Drawings 10000 10000 12000 Capital 10000
Interest on drawing 500 500 600 Interest on Capital 1600 1400 1000
Profit Shared 6600 6600 3300
Balance c/d 200 0 700 Balance c/d 0 1000 0
Total 10700 10500 14300 10700 10500 14300
Balance b/d 1000 Balance b/d 200 700

Selected Ratio for Marshall Company

2017 2018 2019
Liquidity Ratio Current Ratio 1.56 1.7 2.25
Acid Test Ratio 1.1 1.22 1.35

Leverage Ratio Debt Ratio 0.56 0.55 0.53

Debt to Equity Ratio 0.94 1.05 1.15

Profitability Gross Margin Ratio 0.23 0.32 0.51

Return on Asset Ratio 0.52 0.59 0.18
Return on Equity 1.1 1.25 0.38

Asset Usage Inventory Turnover Ratio 2.25 2.6 4.01

Asset Turnover Ratio 0.89 1.95 2.33
Receivable Turnover Ratio 0.25 0.16 5.28
Days Sales Outstanding Ratio 56 Days 62 Days 69 Days
 Selected Ratios for Tristar Company
2009 2010 2011

Liquidity Ratios Current Ratio 1.78 1.94 1.44

Acid Test Ratio 1.32 1.25 0.95

Leverage Ratios Debt Ratio 0.54 0.35 0.39

Debt to Equity Ratio 0.87 0.85 0.64

Profitability Gross Margin Ratio 0.69 0.55 0.48

Return on Assest Ratio 0.52 0.59 0.13
Return on Equity 1.1 1.25 0.21

Asset Usage Inventory Turnover Ratio 4.5 4.2 3.71

Asset Turnover Ratio 2.23 2.65 2.85
Receivables Turnover Ratio 6.5 5.8 4.9
Days Sales Outstanding
Ratio 60 Days 64 Days 75 Days
 The Tristar Company
Statement of Financial Position on 30th April 2011
Amount Amount Amount
Non-Current Asset
Premises (cost) 44750
Motor Vehicle (cost) 16000
Less: Provision for Depreciation 3200
Less: Depreciation of Motor Vehicle 2560 10240
Fixtures and Fittings (cost) 30000
Less: Provision for Depreciation 17500
Less: Depreciation of Fixtures and
Fittings 3000 9500 64,490

Current Assets
Closing Inventory 28,100
Prepaid General Expenses 4200
Bank 7560
Trade Receivables (45000-2250) 42,750 82,610
Total Assets 147,100

Less: Short Term Liabilities

Rent 2500
Trade Payables 54,700 57200
Net Assets 89,900

Capital Financed By:

John 40,000
David 35,000
Sue (25000-10000) 15,000 90,000

Current Account
John 200
David 1,000
Sue 700 -100
89,900