Required:

1. Comment the P&L in relation with
   1. Gross margin compared to sales
   2. Ebitda compared to sales (operating margin)
   3. Ebit compared to Interests (times interest earned)
2. Comment the Balance sheet in relation with
   1. Current ratio
   2. Total asset turnover

ABC Inc. Company shows the following: ABC Inc. P&L Statement FY 2017 Sales 1.500.000 Cost of sales 950.000 Gross Margin 550.000 Salaries 300.000 Rent 50.000 other expenses 35.000 EBITDA 165.000 Amortisations 35.000 EBIT 130.000 Interests 60.000 Taxes 26.000 Net Profit 44.000 ABC Inc. Balance sheet Dec, 31st 2017 ASSETS Cash Acc. Receivables Short term investmentes Buildings LIABILITIES 50.000 Acc. Payables 25.000 Short term loans 90.000 120.000 Total liabilities 55.000 45.000 100.000 Owner's equity Share Capital Ret. Earnings Ret. Earnings prev. Years Total O. Eq 35.000 44.000 106.000 185.000 Total Assets 285.000 Total Liab. + Eq. 285.000 |