JKL Company was established on January 1, 2018 and is engaged in the manufacture of clothes and other apparel. The company makes use of 365 days in its computation for some of the ratios.

JKL Company

COMPARATIVE STATEMENT OF FINANCIAL POSITION

For the year 2018 & 2019

Assets		2018	2019
	Cash	400,000	290,000
	Accounts Receivable	100,000	120,000
	Trading Securities	20,000	40,000
	Inventories	80,000	60,000
	Prepaid Expenses	20,000	10,000
	Total Current Assets	620,000	520,000
	Total Non-Current Assets	300,000	200,000
	Total Assets	920,000	720,000
Liabilities	Total Current Liabilities	50,000	100,000
	Total Non-Current Liabilities	450,000	350,000
Owners Equity	Total Owners Equity	420,000	300,000
	Total Liabilities and OE	920,000	720,000

JKL Company

COMPARATIVE STATEMENT OF COMPREHENSIVE INCOME

For the year 2018 & 2019

	2018	2019
Net Sales	700,000	900,000
Less: Cost of Goods Sold	(100,000)	(80,000)
Gross Profit	600,000	820,000
Less: Operating Expenses	(50,000)	(120,000)
Earnings Before Interest and Taxes	550,000	700,000
Less: Interest Expense	(10,000)	(50,000)
Net Income Before Tax	540,000	650,000
Less Income Tax	(162,000)	(195,000)
Net Income	378,000	455,000

Compute the following ratios for 2015 and 2016. Show your solution.

	2018	2019
Working Capital
Current Ratio
Quick Ratio
Debt to Total Assets Ratio
Debt to Equity Ratio
Times Interest Earned Ratio
Gross Profit Ratio