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The financial information of the company for the year 2018 and 2019 as follow; calculate the following ratio for the company for the year of
The financial information of the company for the year 2018 and 2019 as follow;
calculate the following ratio for the company for the year of 2018 and 2019:
1.Gross profit ratio
2.Net income to revenue ratio( after tax)
3.Return on shareholders, equity( after tax)
4.Current ratio
5.Quick ratio
6.Accounts receivable collection period( in days)
7.Debt-to-equity ratio
8.Inventory turnover( in times)
Revenue (all credit sales) Less: Cost of Sales Gross profit Less: Operating expenses Operating profit before tax Less: Income tax expense Net income 2018 $000 13.000 6,435 6,565 3,037 3,528 600 2.928 2019 $000 18.000 8,280 9.720 4.133 5,587 950 4,637 Cash Accounts receivable Inventories Non-current assets (net) Accounts payable Accrued expenses Bank loan repayable in 2022 Share capital Retained earnings 210 1,070 3.050 12.078 3.490 120 3,838 4.600 4,360 280 1,080 3,750 17.485 3,220 90 5,538 4,750 8,997Step by Step Solution
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