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The following information is taken from records of ABC Company: Items Amount Account receivables 30000 Inventory 80000 Cash 10000 Prepaid expense 6000 Equipments 60000 Land

The following information is taken from records of ABC Company:

Items

Amount

Account receivables

30000

Inventory

80000

Cash

10000

Prepaid expense

6000

Equipments

60000

Land

100000

Building

40000

Wages payable

5000

Account payables

30000

Notes payable

25000

Long term liabilities

70000

Owners Equity

196000

Sales revenue

150000

Cost of goods sold

125000

Net income

25000

According to above information, answer the following questions:

  1. The companys gross profit margin is:
  1. 60%
  2. 55%
  3. None of the above
  1. The companys net profit margin is:
  1. 20%
  2. 17%
  3. 15%
  1. The companys return on assets is :
  1. 10%
  2. 12%
  3. 8%

  1. The companys return on equity is :
  1. 13%
  2. 15%
  3. 11%
  1. The companys net working capital is:
  1. 60000
  2. 196000
  3. 66000
  1. The companys current ratio is:
  1. 2.1 times
  2. 1.5 times
  3. 2.5 times
  1. The companys Quick ratio is:
  1. 1 times
  2. .9 times
  3. .7 times
  1. The companys debt to equity is:
  1. 25%
  2. 36%
  3. 50%
  1. The companys liability to assets is:
  1. 40%
  2. 50%
  3. 60%
  1. The companys Equity to assets is:
  1. 50%
  2. 60%
  3. 70%

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