Question
Liabilities Capital 2019 200 000 2020 300 000 Long term Debt 100 000 225 000 Current Liabilities Account Payable 100 000 100 000 Other Current
Liabilities Capital |
2019 200 000 |
2020 300 000 |
Long term Debt |
100 000 |
225 000 |
Current Liabilities |
|
|
Account Payable |
100 000 |
100 000 |
Other Current Liabilities |
50 000 |
100 000 |
Total |
450 000 |
725 000 |
Assets |
2019 |
2020 |
Fixed Assets |
200 000 |
300 000 |
Other Non-Current Assets |
50 000 |
75 000 |
Current Assets |
|
|
Accounts Receivables |
100 000 |
200 000 |
Inventory |
50 000 |
100 000 |
Cash |
50 000 |
50 000 |
Total |
450 000 |
725 000 |
|
|
|
Profit & Loss Statement for the years ending 31st December
2019 |
2020 | |
Sales |
200 000 |
300 000 |
Less: Cost of Goods Sold |
100 000 |
150 000 |
(Including Purchases) |
(50 000) |
(75 000) |
Gross Profit |
100 000 |
150 000 |
Less: Selling & Distribution Expenses |
30 000 |
50 000 |
Less: Depreciation |
10 000 |
10 000 |
Earnings before Interest and Tax |
60 000 |
90 000 |
Less: Interest |
10 000 |
20 000 |
Earnings before Tax |
50 000 |
70 000 |
Less: Taxes |
20 000 |
28 000 |
Earnings after Tax |
30 000 |
42 000 |
Calculate the Following Ratios for year 2019 and 2020.
important: Explain what each ratio measures and write down the formula.
Important: Interpret the movement from 2019 to 2020 for all Ratios.
1.Current Ratio
2.Operating Profitability Ratio
3.Net Profit Ratio
4.Debt Equity Ratio
5.Return on Equity
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