Dear professor, I have this 10% credit sale assumption in my assignment so I dont know whether that assumption affect the ratio and I hope that you may guide me to calculate this based on the AASB. Moreover if we assume 10% credit sale then do we have to assume that when we calculate the other competitors ratio Thank you before hand.

6. Company and Industry Background . Brief company profile of Adairs Ltd - include its history, financial highlights, and other relevant company information such as when and where it started operations; any major expansions and acquisitions from then to now; types of products/services it offers, significant business relationships. . Industry - includes identifying which industry it operates in, an understanding of the state of the industry and identifying major competitors. 7. Ratio calculations The minimum ratios to be calculated for each of the 3 years are: . Profitability o Return on Equity o Return on Assets o Gross Profit Margin o Net Profit Margin o Cash Flow to Sales o Asset Turnover . Asset Efficiency o Days in Inventory o Days in Debtors o Activity Cycle . Liquidity o Current Ratio o Quick Ratio o Cash Flow Ratio . Capital Structure (Solvency) o Debt to Equity Ratio o Debt Ratio o Equity Ratio o Interest Coverage o Debt Coverage Ratio 3 . The calculations of the above ratios involve detailed workings (show your steps in both the formulas and the figures) for all ratios calculated for each of the three years. All the ratio workings should appear in the appendices, and not in the body of the report. 7.1. Assumptions and other useful information for calculating ratios: . Use the 2020 Financial Statements to collect the 2020 and 2019 figures. . Use the 2018 Financial Statements to collect the 2018 and 2017 figures. . Provide 2 decimal points for your ratios. . Ratio formulas to be used as per the Week 7 and 8 Lecture Summary Videos. . Use Trade & Other Receivables shown in the balance sheet when calculating Days Debtors. Assume that 10% of sales are credit sales