Cases CASE 1: PICKWICK RESTAURANTS Jaclyn Hargrove in the owner of six Pickwick Restaurants. For the past to your has always relied on her accountant to analyse her financial statement. Jeden that if she were able to understand her financial statements, she would be able improve her financial performance. More importantly, she would be able to better decisions that touch on all aspects of her business, from the manage working capital to making investments Jaclyn han just purchased accounting software that can provide her with meeting quarterly, and yearly financial statements and more importantly, all types of the would help her improve her analysis and decisions Jaclyn asks you for some advice in understand the meaning of her financial ments. She shows you her December 31, 2013, statement of financial position statement of income and asks you to calculate and explain the meaning of the me important financial ratios To help Jaclyn understand financial ratios, calculate the financial rates by singhe 2013 statement of financial position and statement of income, and explain to here meaning and significance of each ratio a. current ratio h quick ratio c. debt-to-total-sets ratio d. debt-to-equity ratio e times interest-earned ratio f. fixed-charges coverage ratio average collection period h. inventory turnover ratio 1. capital assets turnover ratio j total assets turnover ratio k profit margin on revenue to 1 return on revenue ratio m. return on total asets ratio return on equity ratio Scanned by CamScanner Cas971 100,000 300.00 56 1.16 Statement of Financial Position As at December 31, 2013 (5) Non-current at Equity Property, plant, and equipment 200.000 Meered shares Accumulated depreciation 700,000 Commons Total current 1,900,000 Retained caring Total equity Long-term borrowing Current Current liabilities Inventories 1,100,000 Trade and other payables Trade receivable 900,00 Nors payable Term deposits 120.000 Accrual Cash Current income while Totalca 2.210.000 Toal current liabilities Total 5.170.000 Total equity and liabilinin 710,000 250,000 10,000 90 000 1.310.000 4110 Statement of Income For the year ended December 31, 2013 (in $) 4,500,000 (3,300,000) 1,200,000 20,000 Revenue Cost of sales Gross profit Other income Expenses Distribution costs Rent Administrative expenses Finance costs Depreciation Total other income/costs Profit before taxes (350,000) (100,000) (345,000) (795,000) (120,000) (50,000) (945,000) 255.000 (127,500) 127,500 Income tax expense Profit for the year