Question

both income statement and balance sheet are for 2018

BD BD 5000000 3700000 1300000 XY2 Income Statement lord ILLUM Particulars Sales Revenue Less: Cost of Goods Sold Gross Profit Less: Operating Expenses Selling Expenses General and Administrative Expenses Depreciation Expenses Total Operating Expenses 600000 400000 150000 Less: Interest Expense Net Profit Before Tax Less Tax (40%) Net Profit after Tax Less : Preferred Stock Dividends Net Profit 1150000 150000 90000 60000 24000 36000 Earnings Per Share BALANCE SHEET of XYZ 2018 2017 ASSETS Gross Fixed Assets (at Cost) 50000 50000 Less: Accumulated depreciation 400000 400000 Net Fixed Assets 590000 590000 Current Assets 2018 2060000 500000 1560000 2017 1700000 350000 1350000 LIABILITIES Shareholders Equity Preferred Stock (2500 Shares, 1.60 Dividend) Common stock (100000 Shares @4BD par) Paid in Capital in excess of par Value Retained Eamings Total Stockholders Equity Long Term Debts Current Liabilities Accounts Payable Notes Payable 300000 280000 Cash 25000 24000 1340000 Accounts Receivables 805000746000 1320000 700000 1170000 Inventories 770000 700000 1530000 Total Current Assets 1540000 Accruals 200000 300000 80000 580000 3090000 400000 350000 120000 870000 2890000 Total Current Liabilities TOTAL HABILITIES TOTAL ASSETS 3090000 2890000

Answer 1

quick ratio	(cash + accounts receivable)/total current liabilities
	2018 (BD)
cash	25000
accounts receivable	805000
total quick assets	830000
total current liabilities	580000
quick ratio	1.4
inventory turnover ratio	cost of goods sold / average inventory
	2018 (BD)
cost of goods sold	3700000
opening inventory	770000
closing inventory	700000
average inventory	735000
inventory turnover ratio	5.0340136
average collection period	365 days / average receivable turnover
average receivable turnover	sales / average accounts receivable
	2018 (BD)
sales	5000000
opening accounts receivable	746000
closing accounts receivable	805000
average accounts receivable	775500
average receivable turnover	6.4
average collection period	56.6
total asset turnover	net sales / average total assets
	2018 (BD)
sales	5000000
opening total assets	2890000
closing total assets	3090000
average total assets	2990000
total asset turnover	1.7
debt ratio	total liabilities / total assets
	2018 (BD)
total current liabilities	580000
long term debt	1170000
total liabilities	1750000
closing total assets	3090000
debt ratio	56.6%
times interest earned ratio	EBIT / interest expense
	2018 (BD)
EBIT	150000
interest expense	90000
times interest earned ratio	1.7
gross profit margin ratio	(gross profit / sales)*100
	2018 (BD)
gross profit	1300000
sales	5000000
gross profit margin ratio	26.0%
net profit margin	(net income / sales)*100
	2018 (BD)
net income	36000
sales	5000000
net profit margin	0.7%
return on total assets	EBIT / average total assets
	2018 (BD)
EBIT	150000
opening total assets	2890000
closing total assets	3090000
average total assets	2990000
return on total assets	5.0%
return on common equity	net income / average common equity
	2018 (BD)
net income	36000
opening common equity	1320000
closing common equity	1340000
average common equity	1330000
return on common equity	2.7%