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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Accounting Principles Volume 1
Authors: Jerry J. Weygandt, Donald E. Kieso, Paul D. Kimmel, Barbara Trenholm, Valerie Warren, Lori Novak
8th Canadian Edition
978-1119502425
