Calculate the following ratios for 2011 and 2012. Show all calculations. (Where an average figure is not available, add this as a comment.) Profit Margin Gross Profit margin Current Ratio Quick Ratio Receivables Turnover Average Collection Period Inventory Turnover

The following information relates to Arte's Gallery. The owner, P Arte, is concerned about the profitability and liquidity of the business. ARTE'S GALLERY INCOME STATEMENT FOR THE YEAR ENDED 30 JUNE 2012 INCOME Sales revenue less Sales Returns and Allow Discount Allowed Net Sales Revenue Less Cost of Sales Inventory 1 July 2011 add Purchases add Freight Inwards less Discount Received Net Cost of Purchases Cost of Goods Avail for Sale less Inventory 30 June 2012 Cost of Sales GROSS PROFIT LESS EXPENSES Selling and Distribution Freight Outwards Sales Staff Wages Advertising Shop Rent Depreciation Shop shelving Administrative Local government taxes Insurance 30 JUNE 2011 $293 500 $ 950 10 000 80 250 166 150 246 400 50 000 196 400 86 150 11 800 120 000 4 700 22 000 7 000 1 150 2 400 167 800 170 450 $(84 300) 162 410 165 500 3 550 1 400 ARTE'S GALLERY STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2012 Less Drawings Capital P Arte 30 June 2012 $250 550 $156 000 12 150 168 150 2 000 Financial Interest Expense LOSS Capital P. Arte 1 July 2011 Less Loss 10 950 282 550 $192 900 84 300 108 600 4,000 $104 600 ARTE'S GALLERY BALANCE SHEET AS AT 30 JUNE 2012 30 JUNE 2011 ASSETS Current Cash and Cash equivalents Accounts Receivable Inventory Prepaid insurance Accrued sales revenue Non-Current Office Equipment Shop Shelving Less Acc Dep Shop Shelving TOTAL ASSETS Less LIABILITIES Current Bank Overdraft Accounts Payable Accrued Expenses $19 600 50 000 600 1 500 $71 700 $37 000 18 200 ? nil nil 1 000 $79 000 11 000 68 000 75 000 140 700 9 000 26 600 500 nil 17 550 nil NET ASSETS 36 100 $104 600 EQUITY Capital - P Arte $104 600 Additional Information: All Sales were on credit. Required: (a) Calculate the following ratios for 2011 and 2012. Show all calculations. (Where an average figure is not available, add this as a comment.) Profit Margin Gross Profit margin Current Ratio Quick Ratio Receivables Turnover Average Collection Period Inventory Turnover