Below are the financial reports of Zenith Ltd

statement of financial position

Zenith Ltd.

Statement of comprehensive income as at March 31, 20X2

Calculate the following ratios using the above information

i) Liquidity Ratios (6 Marks)

Liquidity Ratios	Formula
Current Ratio	Current Assets / Current Liabilities
Quick Ratio	(Cash + Marketable securities + Accounts receivable) / Current liabilities
Cash Ratio	Cash and equivalent / Current liabilities
Net Working Capital Ratio	Current Assets Current Liabilities

ii) Profitability Ratios (6 Marks)

Gross Margin = Gross Profit/Net Sales * 100

Operating Margin = Operating Profit / Net Sales * 100

Return on Assets = Net Income / Assets * 100

iii) Efficiency Ratios (6 Marks)

Inventory Turnover Ratio

Accounts Receivable Turnover Ratio

Asset Turnover Ratio

Debt Capital Ratio (6 Marks)

Total (40: Marks)

Zenith Ltd