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Summary information from the statement of profit or loss for the year ending December 2019 of Green Pty Ltd is as follows: Sales revenue 1,650,000
Summary information from the statement of profit or loss for the year ending December 2019 of Green Pty Ltd is as follows: Sales revenue 1,650,000 Less Cost of sales 1,000,000 Gross profit 650,000 Add other income 25,000 Less Operating expenses 325,000 Profit before tax 350,000 Less Income tax 100,000 Profit after tax 250,000 The operating expenses include 518 000 of interest expense. Further, the following amounts have also been extracted from the company's balance sheets. Balance Sheet 2018 (S) 2017 (3) Cash 60,000 40,000 Accounts receivable 140,000 90,000 Inventory 180,000 170,000 Prepaid expenses 25,000 15.000 Accounts payable 80,000 40,000 Accrued expenses 15,000 10,000 Income tax payable 100,000 90,000 You are required to calculate and interpret the following: a) days inventory turnover b) days debtors c) current ratio d) quick ratio c) gross, profit margin
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