The business has been operating for two years now. Below are financial reports for JJ Asian Cuisine.
Please calculate (show all workings) and comment on the following ratios for JJ Asian Cuisine 2021
Industry benchmark Return on equity 20% Return on assets 13% Profit margin 5% Asset turnover 2.5 Current ratio 2.5 Debt ratio 75% J & J Asian Cuisine Income Statement For period ending June 30 2021 30-Jun 30-Jun 2020 2021 Cash Sales 100,800.00 272,160.00 Credit Sales 43,200.00 116,640.00 Total Revenue 144,000.00 388,800.00 Grocery expense 39,400.00 106,380.00 Petrol expense 2,400.00 6,480.00 Wages expense 65,500.00 172,100.00 Packaging Supplies 8,000.00 21,600.00 Depreciation expense - Vacuum sealer 133.33 133.33 Depreciation expense -Bowl sealing machine 600.00 600.00 Depreciation expense - website 400.00 400.00 Depreciation - car 2,000.00 2,000.00 Rent expense 15,840.00 15,840.00 Electricity and Gas 5,660.00 15,180.00 Water 440.00 1,120.00 Business registration fee 90.00 Interest expense 1,200.00 Total expenses 141,663.33 341,833.33 Profit/Loss 2,336.67 46,966.67J&J Asian Cuisine Cash Flow Statement For year ending 30 June 2021 30-Jun 30-Jun 2020 2021 Cash Flows from operating activities: $ $ Receipts from customers 143,136.00 374,267.52 Payments to grocery suppliers 39,400.00 93,614.40 Payments for business reg 90.00 Payment of wages 65,500.00 172,100.00 Payments for rent 15,840.00 15,840.00 Payment for petrol 2,400.00 6,480.00 payments for packaging supplies 7,422.56 21,294.24 Electricity and Gas 5,660.00 15,180.00 Water 440.00 1,120.00 Payment of interest 1,200.00 Net cash from operating activities 5,183.44 48,638.88 Cash Flows from investing activities: Purchase of Motor Vehicle 15,000.00 Payment for vacuum sealer 800.00 Payment for bowl sealing machine 3,000.00 Payment for Website 1,200.00 Net cash from investing activities 20,000.00 Cash Flows from financing activities Owner contributions 20,000.00 Loan (bank) 10,000.00 Drawings to owners 600.00 Repayment of loan 10,000 Net cash from financing activities 19,400.00 Net cash Inflow (Outflow) 4,583.44 48,638.88 4,583.44 Cash (at the beginning) Cash (at the end of the period) 4,583.44 53,222.32J & J Asian Cuisine Balance Sheet Statement As at 30/06/21 30-Jun 30-Jun 2020 2021 ASSETS Current Assets Cash 4,583.44 53,222.32 Accounts receivable 864.00 15,396.48 Packaging Supplies 68.00 172.00 Total current assets 5,515.44 68,790.80 Non-current assets Bowl Sealing Machine 3,000.00 3,000.00 Less Accumulated depreciation - Bowl sealing machine 600.00 1,200.00 2,400.00 1,800.00 Vacuum sealer 800.00 800.00 Less Accumulated depreciation - vacuum sealer 133.33 266.67 666.67 533.33 Website 1,200.00 1,200.00 Less Accumulated depreciation - website 400.00 800.00 800.00 400.00 Car 15,000.00 15,000.00 Less Accumulated depreciation - car 2,000.00 4,000.00 13,000.00 11,000.00 Total non-current assets 16,866.67 13,733.33 TOTAL ASSETS 22,382.11 82,524.13LIABILITIES Current Liabilities Accounts payable (Packaging Supplies) 645.44 1,055.20 Accounts payable (Grocery supplies) 12,765.60 Total current liabilities 645.44 13,820.80 Non - current Liabilities Loan Total non-current liabilities TOTAL LIABILITIES 613.28 13,807.24 Net Asset 21,736.67 68,703.33 OWNERS EQUITY Capital 21,736.67 Contributions 20,000 Profit made 2,336.67 46,966.67 Drawings 600.00 Total owner equity 21,736.67 68,703.33
