Question
The partial financial statements of Smart Brain Ltd appear below: 2021 2020 $ $ Sales Revenue 700 200 650 000 Cost of Sales 422 000
The partial financial statements of Smart Brain Ltd appear below:
| 2021 | 2020 |
| $ | $ |
Sales Revenue | 700 200 | 650 000 |
Cost of Sales | 422 000 | 474 500 |
Net Profit after tax | 82 000 | 58 000 |
Total Current Assets | 161 300 | 144 400 |
Total Non-current Assets | 440 700 | 370 800 |
Total Current Liabilities | 75 400 | 80 100 |
Total 5 year 10% Debentures | 110 600 | 125 900 |
Share Capital | 340 000 | 300 000 |
General Reserve | 10 000 | 10 000 |
Retained Earnings | 175 000 | 95 000 |
The company does not have any inventory on hand in 2020 but total prepaid expenses amount to $51 400.
Required:
Using the above information, you are required to calculate the following financial ratios. (4 marks)
1. Quick ratio for 2020_________
2. Profit margin for 2020_________
3. Debt to assets for 2021_________
4. Return on ordinary shares equity for 2021_________
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