The following items and their corresponding amounts appeared in the accounting records of Booth Dental Practice on 31 December 20X1:

Accounts receivable

Accounts payable

Building (net

Cash

Delivery equipment (nety inventory

L Booth, capital

Mortgage payable (due 1/9/20X3)

GST control (credit balance)

Marketable securities

Notes payable (due 1/10/20X2)

PAYG tax payable

Office supplies

Land

Notes receivable (due 31/12/20X3)

Ultice equipment (net)

Prepaid insurance

Notes payable (due 31/12/2UX5)

Interest payable (due 1/10/20X2)

Unearned revenue

Investment in government bonds (due 31/12/20X7)

Salaries payable

$ 14700

8700

72000

8700

30000

22.500

108 200

72000

15000

6000

30000

4500

7800

18 000

21 000

19200

5100

33 000

3 000

9 000

60000

3600 Booth Dental Practice

Income Statement

for the year ending 31 December 20X1

$

150,000

75,000

Sales

Less: Cost of sales

Gross profit

Less: expenses

Selling, general & admin

Interest

Profit before tax

Taxation expense

Profit after tax

75,000

62,000

1,200

63,200

11,800

3,500

8,300

Selected balances as at 31 December 20X0:

Accounts receivable 12 000

Inventory

11 600

Total asscts

168 000 Required:

Equity

90 000

(a) Calculate the following ratios:

1. Current ratio and quick ratio
2. Debt ratio
3. Inventory turnover (and day's inventory)
4. Accounts receivable turnover (and day's receivable)
5. Operating cycle (in days)
6. ROA and ROE
7. Gross Profit Percentage and Profit Margin

(b) Identify the mtios from part (a) you would use to annlyse:

1. Profitability
2. Liquidity
3. Financial flexibility
4. Operating copability

The following items and their corresponding amounts appeared in the accounting records of Booth Dental Practica an 21 i (b) Identify the ratios from part (a) you would use to analyse: 1. Profitability 2. Liquidity 3. Financial flexibility 4. Operating capability The following items and their corresponding amounts appeared in the accounting records of Booth Dental Practica an 21 i (b) Identify the ratios from part (a) you would use to analyse: 1. Profitability 2. Liquidity 3. Financial flexibility 4. Operating capability