For ratios, 47.87,0.01,0.01,0.33,0.31, could you help me check? Besides, could you give me some comments on profitability, liquidity and financial position and strategies(marketing and advertising are ok)?
Thanks a lot
Acton Cleaning Yarralumia, ACT 2600 YTD Credit YTD Debit $17,647.56 $2,400.00 $100.00 $200.00 $1,200.00 $3,000.00 $70.00 $2,700.00 $60.00 Trial Balance July 2020 Debit Credit $17,647.56 $2,400.00 $100.00 $200.00 $1,200.00 $3,000.00 $70.00 $2,700.00 $60.00 $2,300.00 $44.00 $400.00 $18,300.00 $25,220.00 $174.00 $100.00 $800.00 $2.470.00 $60.00 $1,200.00 $2,400.00 $9,742.44 $45,294.00 $45,294.00 Account Name Cash Account Prepaid Insurance Cleaning Supplies Office Supplies Prepaid Rent Clean Equipment at Cost Clean Equipment Accum Dep Furniture & Fixtures at Cost Furniture & Fixtures Accum Dep Office Equipment at Cost Office Equipment Accum Dep Accounts Payables Owner Capital Cleaning Revenue Depreciation Expense Office Supplies Expense Advertising Expense Cleaning Supplies Expense Postage Expense Insurance Expense Rent Expense Wages & Salaries Total: $2,300.00 $44.00 $400.00 $18,300.00 $25,220.00 $174.00 $100.00 $800.00 $2,470.00 $60.00 $1,200.00 $2,400.00 $9,742.44 $45,294.00 $45,294.00 Acton Cleaning Yarralumla, ACT 2600 Profit & Loss Statement July 2020 $25,220.00 $25,220.00 $25,220.00 $174.00 $100.00 $800.00 $1,074.00 Income Services Revenue Cleaning Revenue Total Income Gross Profit Expenses General & Administrative Exp Depreciation Expense Office Supplies Expense Advertising Expense Total General & Administrative Exp Operating Expenses Cleaning Supplies Expense Postage Expense Insurance Expense Rent Expense Total Operating Expenses Depreciation Expenses Employment Expenses Wages & Salaries Total Depreciation Expenses Total Expenses Operating Profit Total Other Income Total Other Expenses Net Profit/(Loss) $2,470.00 $60.00 $1,200.00 $2,400.00 $6,130.00 ## $9,742.44 $16,946.44 $8,273.56 $0.00 $0.00 $8,273.56 Balance Sheet As of July 2020 $17,647.56 $17,647.56 $2,400.00 $100.00 $200.00 ($1,200.00) $19,147.56 $3,000.00 ($70.00) $2,930.00 $2,700.00 ($60.00) Assets Current Assets Cash On Hand Cash Account Total Cash On Hand Prepaid Insurance Cleaning Supplies Office Supplies Prepaid Rent Total Current Assets Non-Current Assets Cleaning Equipment Clean Equipment at Cost Clean Equipment Accum Dep Total Cleaning Equipment Fumiture and Fixtures Fumiture & Fixtures at Cost Fumiture & Fixtures Accum Dep Total Fumiture and Fixtures Office Equipment Office Equipment at Cost Office Equipment Accum Dep Total Office Equipment Total Non-Current Assets Total Assets Liabilities Current Liabilities Accounts Payables Total Current Liabilities Total Liabilities Net Assets Equity Owner's Equity Owner Capital Current Year Eamings Total Equity $2,640.00 $2,300.00 (544.00) $2,256.00 $7,826.00 $26,973.56 $400.00 $400.00 $400.00 $26,573.56 $18,300.00 $8,273.56 $26,573.56 1. Write a report commenting on profitability, liquidity and financial position of the business after this first month of operations in comparison with the cleaning industry averages listed in the table below. 2. Suggest relevant and specific strategies that could improve the store's operation. Ratios Formula Industry Average Current Ratio Current Assets 2.00 Current Liabilities Total Liabilities Debt-to-equity Ratio 0.50 Total Equity Total Liabilities Debt-to-assets Ratio 0.30 Total Assets Profit margin Net Profit 0.80 Total Revenue Net Profit Rate of return on total assets 0.35 Total Assets Write the report to Emma, up to a maximum of 1,000 words. Word count excludes, if any, Table of Content, references and appendices. Hint: In your recommendations, you may include suggestions about marketing practices, advertising policies appropriate to the business and briefly discuss some limitations of ratio analyses, especially in this context
