Ratio analysis -Calculate quick ratio and net profit ratio. Industry average ratios are provided for you to make comparisons.

Use the following to calculate the ratios

Two of the most important ratios for Trinity Batteries Ltd are the quick ratio and the net profit ratio. The company would like to know what these two ratios are compared to the industry averages . Assume the industry averages are 0.60 times (or 0.60:1) for the quick ratio and 40,50% for the net profit ratio.Round your answers to 2 decimal places

1.income statement

Trinity Batteries Ltd
	$	$
Sales		9,500,000
Cost of Goods Sold		1,200,000
Gross Profit		8,300,000
Operating Expenses
Sales Salaries Expense	400,000
Office Salaries Expense	450,000
Advertising Expense	350,000
Office Supplies Expense	328,000
Rent Expense	820,000
Depreciation Expense	280,000
Insurance expense	250,000
Utilities expense	292,000	3,170,000
Operating Profit/EBIT		5,130,000
Interest expenses		270,000
Profit before tax		4,860,000
Tax expenses		360,000
Net profit		4,500,000

2.Balance sheet

Trinity Batteries Ltd
Current Assets	$	$
Bank	1,050,000
Accounts Receivable	4,500,000
Inventory	2,950,000	8,500,000
Non-Current Assets
Equipment	13,100,000
Land and Buildings	27,000,000
Fixture	2,900,000	43,000,000
Total Assets		51,500,000
Current Liabilities
GST Collected	800,000
Accounts Payable	5,200,000
Less :GST Paid	350,000	5,650,000
Non-Current Liabilities
Mortgage		27,000,000
Total Liabilities		32,650,000
Net Assets		18,850,000
Equity
Capital	15,000,000
Less: Dividends Paid	650,000
Net Profit	4,500,000	18,850,000