QUESTION 3

Triple Tree Corporation provides the financial information as follows:-

Income Statement
For the year ended 31 December 2020
Revenue	120,000
Expenses	(60,000)
Gross profit	60,000
Income taxes	(10,000)
Profit after tax	50,000

Balance Sheet
As at 31 December 2020 and 2019
	2020	2019
Account receivable	12,500	7,000
Accumulated depreciation	7,500	5,000
Cash	33,500	5,000
Equipment	15,000	20,000
Inventory	8,000	20,000
Long term investment	80,000	0
Other current assets	5,500	2,500
Total Assets	162,000	59,500
Account payable	19,500	23,000
Long term bond	20,000	10,000
Long term Loan	50,000	0
Other interest payable	4,000	2,000
Treasury stock	15,000	23,000
Common Stock	5,000	3,000
Dividend paid	5,000	2,000
Retained earnings	43,500	(3,500)
Total Liabilities and Equity	162,000	59,500

As a junior account executive, your manager asked you to prepare the Cash flow statement for the company.

Required

Calculate the ratio

1. Gross profit margin
2. Profit margin
3. Current ration
4. Acid test ratio
5. Day in receivables
6. Account receivable turnover
7. Day in inventory
8. Inventory turnover
9. Return on investment
10. Return on equity