4.18 The financial statements of Helena Beauty Products Ltd. are presented below. Helena Beauty Products Ltd. Income Statements for the year ended September 30, 2010 (in $ thousands) 3,840 2009 3,600 Sales (all on credit) Less: Cost of goods sold: Opening inventory Plus: Purchases Goods available for sale Less: Closing inventory Cost of goods sold Gross profit Less: Expenses Net income 400 2,350 2,750 500 320 2,240 2,560 400 2.250 1,590 1,500 90 2.160 1440 1360 80 I $ 75,000 $ 50,000 Accounts payable Long-term liabilities Long-term liabilities (10%) Preferred shares (2%) Total long-term liabilities Total liabilities 200,000 100,000 300,000 375,000 150,000 100,000 250,000 300,000 Shareholders' equity Common shares Retained earnings Total shareholders' equity Total liabilities and shareholders' equity 200,000 100,000 300,000 $ 675,000 I 200.000 35,000 1235.000 $ 535,000 Required: (a) Calculate the four profitability ratios for Creative Advertising Limited for 2010. (b) What can you conclude from these ratios? 4.12 Use the data in Problem and Case 4.11. The notes to the financial statements indicated that 80% of Chapter heating and interpreting teams 10 Creative Advertising Limited Balance Sheet 13 at December 31. 2001 Assets Current assets Cash Accounts receivable Inventory Total current assets Property, plant, and equipment Intangible anses Total annet $ 25.000 50.000 50.000 125.000 500.000 000 105.000 $15.000 40.000 45.00 100.000 400.000 11.009 $525.000 I 175.000 150 000 Liabilities Current liabilities Accounts Payable Long-term labilities Lunter diablitas (102) Preferred shares (2) Total lonter lates Total abilities 200.000 150 000 3000 1155 Shareholders' exity Commonsta Retures Tutarha Total Batin and shareholders 200.500 SDO DO 0 57.00 2232 Required: a) Chorar profility to CA W condade estate