Question
After reviewing the following data related to Azraq Company, answer the following questions: 2019 2020 Revenue (sales on account) 315,000 420,000 cost of sales 205,500
After reviewing the following data related to Azraq Company, answer the following questions:
2019 | 2020 | |
Revenue (sales on account) | 315,000 | 420,000 |
cost of sales | 205,500 | 298,500 |
Other expenses | 84,000 | 109,500 |
cash or its equivalent | 84,000 | (96,000) |
INVENTORY | 111,000 | 163,500 |
accounts receivable | 84,000 | 150,000 |
Fixed assets | 138,000 | 213,000 |
accounts payable | 57,000 | 55,500 |
Owners equity | 360,000 | 324,000 |
Long term commitments | 69,000 |
The inventory on January 1, 2018 was 67,500 dinars First: Calculate the following percentages for the years 2019 and 2020 (70 marks) A. Gross profit margin B. Return on Equity C. Turnover ratio D. Quick ratio E. Equity ratio F. Inventory turnover. Second: Writing a report to the owner highlighting the strengths and areas of interest in relation to the profitability, liquidity and financial stability of the company, including recommendations to improve the areas of concern. (30 marks)
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