Q.No.2. The following data is for The Company XYZ. You are to use the data to compute the following financial ratios and interpret the results.

a) Current Ratio

b) Quick Ratio

c) Interest Coverage Rate

d) Profitability in relation to sales

e) Profitability in relation to Investment

Balance Sheet as at 30 June 2018

Plant & Equipment26,881

Long-Term Investments and other fixed Assets20,606

Inventory56,372

Cash & Short-term Investments14,657

Accounts Receivables71,873

Total Assets190,389

Equity135,013

Long-Term Liabilities17,895

Current Liabilities37,481

Total Liabilities & Equity190,389

Income Statement for the Year ended 30 June 2018

Sales254,553

Costs of Goods Sold(149,806)

Selling and Administrative Expenses(69,706)

Earnings before Interest & Tax35,041

Interest Expense(2,525)

Earning before Tax32,516

Taxes(13,976)

Net Income18,540