ost of goods sold :-

Sales - gross profit = 1000000 - 400000 = 600000

Calculation of total expenses:- (Depreciation + advertisement exp. + Rent + salaries + commission + other exp. ) = (80000 + 60000 + 15000 + 56000 + 5000 + 7000) = 223000

Calculation of Gross profit margin:- Formula = sales - cost of goods sold

= 1000000 - 600000

= 400000

Calculation of gross profit percentage margin:-Formula = (Gross profit margin / sales)*100

= (400000 / 1000000)*100

= 40%

Calculation of net profit margin:- Formula = Gross profit - total expenses

= 400000 - 223000

= 177000

Calculation of net profit percentage margin: - Formula = (Net profit / Net Sales)*100%

= (117 000/ 1 000 000) *100

= %17.7

Calculation of Current Ratio: - Formula = Current Assets / Current Liabilities

= 135 000/ 47 000

= 2.87 : 1

Calculation of Acid Test Ratio: - Formula = Liquid Assets / Current Liabilities

Liquid Assets = Cash + Accounts Receivables

= 100 000 + 20 000 = 120 000

Acid Test ratio = 120 000/ 47 000 = 2.55 : 1

Calculation of ROCE: Formula = Net Income / Shareholders equity

= 177 000 / 225 000

= 0.79

Required :

In addition to these calculations, please make analysis and interpretations of the data determined.