Question
Calculate liquidity ratios for 2019 and comment. TABLE 1. INCOME STATEMENT INCOME STATEMENT 2019 2018 Sales revenue 80,000 61,200 Sale returns -2,000 -1,200 Net sales
- Calculate liquidity ratios for 2019 and comment.
TABLE 1. INCOME STATEMENT
INCOME STATEMENT | 2019 | 2018 |
Sales revenue | 80,000 | 61,200 |
Sale returns | -2,000 | -1,200 |
Net sales revenue | 78,000 | 60,000 |
Cost of goods sold | -60,000 | -40,000 |
Gross Margin | 18,000 | 20,000 |
Marketing, selling, and delivery expenses | -5,600 | -4,850 |
General administrative expenses | -5,000 | -4,150 |
Operating income | 7,400 | 11,000 |
Other gains and losses | -1,500 | -1,000 |
Financing expenses | -3,000 | -2,000 |
Period income | 2,900 | 8,000 |
Corporate tax | -580 | -1,600 |
Net period income | 2,320 | 6,400 |
TABLE 2. BALANCE SHEET
| 2019 | 2018 |
ASSETS |
|
|
Current Assets |
|
|
Cash and cash equivalents | 10,000 | 8,000 |
Trade receivables (net) | 21,000 | 14,000 |
Inventories | 23,000 | 16,000 |
Prepaid expenses and accrued revenues | 3,000 | 2,000 |
Total current assets | 57,000 | 40,000 |
Non-current (fixed) Assets |
|
|
Tangible assets (net) | 92,280 | 73,800 |
Total non-current (fixed) assets | 92,280 | 73,800 |
TOTAL ASSETS | 149,280 | 113,800 |
LIABILITIES |
|
|
Short-term Liabilities |
|
|
Bank loans (ST) | 7,000 | 9,000 |
Trade payables | 16,000 | 12,000 |
Taxes and other duties payable | 1,700 | 2,200 |
Provision for corporate tax | 580 | 1,600 |
Total short-term liabilities | 25,280 | 24,800 |
Long-term Liabilities |
|
|
Bank loans (LT) | 45,000 | 35,000 |
Total long-term liabilities | 45,000 | 35,000 |
Total liabilities | 70,280 | 59,800 |
Shareholder's Equity | 79,000 | 54,000 |
TOTAL LIABILITIES AND SHAREHOLDERS EQUITY | 149,280 | 113,800 |
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