Liquidity Ratios:

1. What is the Current Ratio and Quick Ratio? What do they mean for the business in terms of liquidity and ability to pay off current liabilities?
2. Is the business in a comfortable position in terms of liquidity, or are there any concerns?

2. Profitability Ratios:

1. What is the Gross Profit Margin, Operating Profit Margin and Net Profit Margin? What do they indicate about the profitability of the business?
2. Is the business generating profits or experiencing losses, and what is the magnitude of those profits/losses?

3. Efficiency Ratios:

1. What is the Accounts Receivable Turnover Ratio and Inventory Turnover
2. Ratio? What do they indicate about the efficiency offthe business in managing its assets?
3. Are there any concerns about the efficiency of the business in managing its assets?

4. Solvency Ratios:

1. What is the Debt-to-Equity Ratio and Interest Coverage Ratio? What do they indicate about the business's ability to meet its longlterm obligations?
2. Is the business in a comfortable position in terms of solvency, or are there

any concerns?

Write a short report on the comoanys end of year status

Look at the 3 accounts (P+L, BS, Cash flow) and answer the questions giveen

\begin{tabular}{|l|r|} \hline Particulars & \multicolumn{1}{|c|}{ Amount } \\ \hline Sales & 614,100.00 \\ \hline Less: Operating Expenses: & \\ \hline Salaries Expense & 96,000.00 \\ \hline Rent Expense & 36,000.00 \\ \hline Insurance & 6,000.00 \\ \hline Internet and communication & 6,000.00 \\ \hline Utilities Expense & 3,000.00 \\ \hline Legal Expense & 1,500.00 \\ \hline Advertising Expense & 102,000.00 \\ \hline Travel expenses & 9,000.00 \\ \hline Bank charges & 300.00 \\ \hline Depreciation Expense & 2,000.00 \\ \hline Amortisation Expense & 2,000.00 \\ \hline Total Operating Expenses & 263,800.00 \\ \hline Operating income & 350,300.00 \\ \hline Interest Expense & 18,000.00 \\ \hline Income before taxes & 332,300.00 \\ \hline Income Taxes Expense & 34,503.00 \\ \hline Net Income & 297,797.00 \\ \hline \end{tabular}