/auestion 4: (25 marks) Morning star plc. is a manufacturer of computer accessories. The following are selected ite appearing in the income statement and balance sheet for the year ended December 31st, 2015. Income Statement Net Sales 1,620,000 Less: Cost of Goods Sold 1,110,000 Gross Profit 510,000 Selling and general expenses 360,000 Net Operating profit 150,000 Interest expenses 24,000 Net Profit before ta 126,000 44,100 Income tax 35% Net profit for the year 81,900 Balance Sheet Cash and short term investments 45,000 Receivables 135,000 Inventories 96,000 348,000 Property, plant & Equipment Total Assets 624,000 126,000 156,000 237,000 Total current liabilities Total Non-current liabilities Shareholder's Equity Retained Earnings Total Liabilities and Equity 105,000 624,000 Required: Using the information above, compute the Company's ratio below and comment on each: a. Acid-test ratio b. Current ratio C. Asset Turnover d. Interest Cover e. Gearing ratio Debt ratio 8. Return on capital employed h. Gross profit margin i. Net profit margin Operating profit Margin

/auestion 4: (25 marks) Morning star plc. is a manufacturer of computer accessories. The following are selected ite appearing in the income statement and balance sheet for the year ended December 31st, 2015. Income Statement Net Sales 1,620,000 Less: Cost of Goods Sold 1,110,000 Gross Profit 510,000 Selling and general expenses 360,000 Net Operating profit 150,000 Interest expenses 24,000 Net Profit before ta 126,000 44,100 Income tax 35% Net profit for the year 81,900 Balance Sheet Cash and short term investments 45,000 Receivables 135,000 Inventories 96,000 348,000 Property, plant & Equipment Total Assets 624,000 126,000 156,000 237,000 Total current liabilities Total Non-current liabilities Shareholder's Equity Retained Earnings Total Liabilities and Equity 105,000 624,000 Required: Using the information above, compute the Company's ratio below and comment on each: a. Acid-test ratio b. Current ratio C. Asset Turnover d. Interest Cover e. Gearing ratio Debt ratio 8. Return on capital employed h. Gross profit margin i. Net profit margin Operating profit Margin

uestion 4: (25 marks) orning star plc. is a manufacturer of computer accessories. The following are selected ite ppearing in the income statement and balance sheet for the year ended December 31st, 2015. Income Statement Net Sales Less: Cost of Goods Sold Gross Profit Selling and general expenses Net Operating profit Interest expenses Net Profit before ta 1,620,000 1,110,000 510,000 360,000 150,000 24,000 126,000 44,100 81,900 Income tax 35% Net profit for the year Balance Sheet Cash and short term investments Receivables Inventories Property, plant & Equipment Total Assets Total current liabilities Total Non-current liabilities Shareholder's Equity Retained Earnings Total Liabilities and Equity 45,000 135,000 96,000 348,000 624,000 126,000 156,000 237,000 105,000 624,000 Required: Using the information above, compute the Company's ratio below and comment on each: a. Acid-test ratio b. d. f. c. Asset Turnover e. Gearing ratio g. Return on capital employed i. Net profit margin Current ratio Interest Cover Debt ratio Gross profit margin Operating profit Margin h. j