Question
The following information is extracted from annual reports of Sunshine Ltd at the end of 2020. 2020 $ 2019 $ Cash assets 22,000 30,000 Accounts
The following information is extracted from annual reports of Sunshine Ltd at the end of 2020.
|
| 2020 $ | 2019 $ |
| Cash assets | 22,000 | 30,000 |
| Accounts Receivable | 33,000 | 40,000 |
| Inventory | 35,000 | 38,000 |
| Land | 50,000 | 45,000 |
| Accounts Payable | 18,000 | 14,000 |
| Short term Loan | 27,000 | 20,000 |
| Non-Current Liabilities | 23,000 | 22,000 |
| Revenue | 98,000 | 105,000 |
| Cost of Sales | 55,000 | 53,000 |
| Gross Profit | 43,000 | 52,000 |
| Other Expenses | 31,500 | 33,000 |
| Profit | 11,500 | 19,000 |
a) Calculate the following ratios for 2020 (1 decimal place):
- Current ratio (2 marks)
- Profit margin (2 marks)
- Asset turnover (2 marks)
- Inventory turnover (2 marks)
- Debt ratio (2 marks)
b) Comment on the information about the company provided by each ratio. (5 marks)
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Low Income Housing Tax Credit IRS Audit Techniques Guide
Authors: Internal Revenue Service
1st Edition
978-1304135087
