Use the financial statements prepared in Part A and B above to calculate the following accounting ratios for the firm:

1. Gross profit percentage.

2. Net profit percentage.
3. Current ratio.
4. Quick/Liquid ratio.
5. Stock turnover.
6. Average/debtors collection period
7. Average Payment period
8. Use the results obtained in part (B) to prepare a report comparing the performance of the entity.

$ Equipco Machines Limited Manufacturing, Income Statement for Year ended October 31, 2021 $ $ $ Opening Stock of raw materials $ 7,000.00 Add purchases of raw materials $ 38,000.00 Cost of raw materials available for use $ 45,000.00 Less closing stock of raw materials $ 9,000.00 Cost of raw materials consumed $ 36,000.00 Add Direct Cost: Direct Labour $ 28,000.00 Accrued Direct Labour $ 3,000.00 $ 31,000.00 Prime Cost $ 67,000.00 Factory Overheads: Rent & Rates (35000-2000=$33000*45%) $ 14,850.00 Electricity (60%*15000) $ 9,000.00 Depreciation of Plant & Machinery (30000-12000*10%) $ 1,800.00 $ 25,650.00 $ 92,650.00 Add Opening Work in progress $ 5,000.00 $ 97,650.00 bless Closing Work in progress $ 8,000.00 Cost of production $ 89,650.00 Profit (25% $89650) $ 22,412.50 Total cost of finished goods $ 112,062.50 Opening stock of finished goods $ 6,900.00 $ 118,962.50 Less stock of finished goods $ 10,350.00 $ 108,612.50 Less unrealized profit $ 690.00 $ 107,922.50 Expenses Rent & Rates $ 18,150.00 Electricity $ 6,000.00 Depreciation of Motor Vehicles (16000* 25%) $ 4,000.00 Postages & Stationery $ 2,000.00 Administrative staff salary $ 19,380.00 Advertising $ 4,500.00 $ 54,030.00 Cost of Sales $ 161,952.50 Net Profit $ 30,047.50 Sales $ 192,000.00 $ o 2 Equip co Machines Limited Manufacturing Statement of Financial Position as at October 31, 2021 Non Current Assets Cost ACC Dep NBV Plant & Machinery $ 30,000.00 $ 13,800.00 $ 16,200.00 Motor Vehicle $ 16,000.00 $ 8,000.00 $ 8,000.00 $ 46,000.00 $ 21,800.00 $ 24,200.00 Current Assets Bank $ 16,600.00 Prepayment $ 2,000.00 Debtors $ 28,000.00 Raw material $ 9,000.00 Work in progress $ 8,000.00 finished goods $ 10,350.00 $ 73,950.00 Total Assets $ 98,150.00 Current Liabilities: Creditors Accrude Wages Unrealized profits $ $ $ 5,500.00 3,000.00 690.00 $ 9,190.00 Capital Less Drawings $ $ $ $ 48,000.00 11,500.00 36,500.00 52,460.00 $ $ Add profit ($30,047.50+$22,412.50) 88,960.00 98,150.00 0