Financial Ratios Form Balance Sheet Ratios Working capital Current ratio Balance sheet ratios are: working capital, current ratio, Debt-to-equity comparison, and debt ratio. Working capital=current assets,- Current liabilities Working capital= 152,475 - 66,880 Working Capital: $85,595 Current ratio= current assets/current liabilities |current ratio=152,475/66,880 Current Ratio: 2.28 (228%) Debt-to-equity comparison Debt-to-Equity ratio=total liabilities/shareholders equity Debt ratio Income Statement Ratios Debt-to-Equity Ratio:84,665/114,910 Debt-to-Equity Ratio: 0.74 (74%) Debt Ratio= total liabilities/total assets |Debt ratio= 84,665/199.575 Debt Ratio: 0.42 (42%) 100% Gross Profit Margin 31,520-gross profit Net Profit Margin Gross Profit Margin: 35.99% Net Profit Margin: 27.8% Balance Sheet Form June 30, 20XX Current Assets Totals Cash $ 22,550 Sales Returns $87,560 $4,325 Inventory $38,090 Total Current Assets $ 152,475 Fixed Assets Totals Supplies $ 2,100 Equipment Van Savings bonds $15,000 $22,000 $8,000 Total Fixed Assets $ Total Assets 47,100 199,575 Current Liabilities Totals Accounts Payable - Smith's importing $ 5,675 Accounts Payable - RHS Clothing $3,490 Cost of Goods Sold Delivery expense Supplies used $56,040 $1,200 $475 Total Current Liabilities $ 66,880 Long-Term Liabilities Totals Internet & Phone, Heat, electricity, water $ $1,175 Advertising $800 Automobile Loan and Insurance $15,810 Total Long-Term Liabilities $ 17,785 Total Liabilities $ $84,665 Total Liabilities and Equity $114,910 Revenue Revenue from Sales Less: Returns Total Revenue Cost of Goods Sold Tiny Tottlers Income Statement Less: Cost of Goods Sold Gross Profit Operating Expenses Wages $87,560 Rent Supplies Expense $475 Utilities (hydro, water, heat) $675 Advertising $800 Internet and Phone $500 Gas Miscellaneous Total Expenses Net Profit $87,560 $56,040 $71,940 $15,620