What is the Return on Capital Employed for this Company? INCOME STATEMENT Particulars Amount Income 56,897,573 Revenue 56,875,221 Interest Earned 22,352 Expenses Cost of Sales: 32,775,264 Cost of Goods Sold 32,733,149 Utilities Expense 42,115 Gross Profit: Operating Expenses: 13,345,676 Salaries Expense 3,255,449 Rent Expense 956,224 Depreciation Expense: Equipment 321,588 Depreciation Expense: Building 459,887 Bad Debt Expense 896,338 Insurance Expense 1,100,365 Interest Expense 1,555,300 Income Tax Expense 4,800,525 Operating Profit: 18,397,451 Profit: 10,776,633 BALANCE SHEET Particulars Amount Assets Current Assets: 21,322,431 Cash 2,690,644 Accounts Receivable 5,890,887 Inventory 12,595,645 Prepaid Insurance 145,255 Non Current Assets: 29,715,924 Equipment 15,799,800 Accumulated Depreciation: Equipment -3,244,001 Building 18,560,325 Accumulated Depreciation: Building -5,655,225 Land 4,255,025 Total Assets: 51,038,355 Liabilities Current Liabilities: 11,194,411 Unearned Revenue 668,236 Accounts Payable 5,663,200 Salaries Payable 145,250 Interest Payable 67,500 Income Taxes Payable 4,650,225 Non Current Liabilities: 15,500,000 Long Term Loan @ 5% p.a. 15,500,000 Total Liabilities: 26,694,411 Equity Common Stock 280,000 Additional Paid In Capital 5,320,000 Retained Earnings 18,743,944 Total Equity: 24,343,944 Question 1 options: 30% 43% 52% 35% Question 2 (2 points) Saved What is the Net Profit Ratio of this Company? INCOME STATEMENT Particulars Amount Income 56,897,573 Revenue 56,875,221 Interest Earned 22,352 Expenses Cost of Sales: 32,775,264 Cost of Goods Sold 32,733,149 Utilities Expense 42,115 Gross Profit: Operating Expenses: 13,345,676 Salaries Expense 3,255,449 Rent Expense 956,224 Depreciation Expense: Equipment 321,588 Depreciation Expense: Building 459,887 Bad Debt Expense 896,338 Insurance Expense 1,100,365 Interest Expense 1,555,300 Income Tax Expense 4,800,525 Operating Profit: 18,397,451 Profit: 10,776,633 BALANCE SHEET Particulars Amount Assets Current Assets: 21,322,431 Cash 2,690,644 Accounts Receivable 5,890,887 Inventory 12,595,645 Prepaid Insurance 145,255 Non Current Assets: 29,715,924 Equipment 15,799,800 Accumulated Depreciation: Equipment -3,244,001 Building 18,560,325 Accumulated Depreciation: Building -5,655,225 Land 4,255,025 Total Assets: 51,038,355 Liabilities Current Liabilities: 11,194,411 Unearned Revenue 668,236 Accounts Payable 5,663,200 Salaries Payable 145,250 Interest Payable 67,500 Income Taxes Payable 4,650,225 Non Current Liabilities: 15,500,000 Long Term Loan @ 5% p.a. 15,500,000 Total Liabilities: 26,694,411 Equity Common Stock 280,000 Additional Paid In Capital 5,320,000 Retained Earnings 18,743,944 Total Equity: 24,343,944 Question 2 options: 25% 19% 12% 30% Question 3 (2 points) Saved What is the Gross Profit Ratio of this Company? INCOME STATEMENT Particulars Amount Income 56,897,573 Revenue 56,875,221 Interest Earned 22,352 Expenses Cost of Sales: 32,775,264 Cost of Goods Sold 32,733,149 Utilities Expense 42,115 Gross Profit: Operating Expenses: 13,345,676 Salaries Expense 3,255,449 Rent Expense 956,224 Depreciation Expense: Equipment 321,588 Depreciation Expense: Building 459,887 Bad Debt Expense 896,338 Insurance Expense 1,100,365 Interest Expense 1,555,300 Income Tax Expense 4,800,525 Operating Profit: 18,397,451 Profit: 10,776,633 BALANCE SHEET Particulars Amount Assets Current Assets: 21,322,431 Cash 2,690,644 Accounts Receivable 5,890,887 Inventory 12,595,645 Prepaid Insurance 145,255 Non Current Assets: 29,715,924 Equipment 15,799,800 Accumulated Depreciation: Equipment -3,244,001 Building 18,560,325 Accumulated Depreciation: Building -5,655,225 Land 4,255,025 Total Assets: 51,038,355 Liabilities Current Liabilities: 11,194,411 Unearned Revenue 668,236 Accounts Payable 5,663,200 Salaries Payable 145,250 Interest Payable 67,500 Income Taxes Payable 4,650,225 Non Current Liabilities: 15,500,000 Long Term Loan @ 5% p.a. 15,500,000 Total Liabilities: 26,694,411 Equity Common Stock 280,000 Additional Paid In Capital 5,320,000 Retained Earnings 18,743,944 Total Equity: 24,343,944 Question 3 options: 42.5% 33% 26% 49% Question 4 (2 points) Saved What is the Current Ratio for this Company? INCOME STATEMENT Particulars Amount Income 56,897,573 Revenue 56,875,221 Interest Earned 22,352 Expenses Cost of Sales: 32,775,264 Cost of Goods Sold 32,733,149 Utilities Expense 42,115 Gross Profit: Operating Expenses: 13,345,676 Salaries Expense 3,255,449 Rent Expense 956,224 Depreciation Expense: Equipment 321,588 Depreciation Expense: Building 459,887 Bad Debt Expense 896,338 Insurance Expense 1,100,365 Interest Expense 1,555,300 Income Tax Expense 4,800,525 Operating Profit: 18,397,451 Profit: 10,776,633 BALANCE SHEET Particulars Amount Assets Current Assets: 21,322,431 Cash 2,690,644 Accounts Receivable 5,890,887 Inventory 12,595,645 Prepaid Insurance 145,255 Non Current Assets: 29,715,924 Equipment 15,799,800 Accumulated Depreciation: Equipment -3,244,001 Building 18,560,325 Accumulated Depreciation: Building -5,655,225 Land 4,255,025 Total Assets: 51,038,355 Liabilities Current Liabilities: 11,194,411 Unearned Revenue 668,236 Accounts Payable 5,663,200 Salaries Payable 145,250 Interest Payable 67,500 Income Taxes Payable 4,650,225 Non Current Liabilities: 15,500,000 Long Term Loan @ 5% p.a. 15,500,000 Total Liabilities: 26,694,411 Equity Common Stock 280,000 Additional Paid In Capital 5,320,000 Retained Earnings 18,743,944 Total Equity: 24,343,944 Question 4 options: 1 : 1 2.5 : 1 1.5 : 1 1.9 : 1 Question 5 (2 points) Saved What is the Debt Equity Ratio for this Company? INCOME STATEMENT Particulars Amount Income 56,897,573 Revenue 56,875,221 Interest Earned 22,352 Expenses Cost of Sales: 32,775,264 Cost of Goods Sold 32,733,149 Utilities Expense 42,115 Gross Profit: Operating Expenses: 13,345,676 Salaries Expense 3,255,449 Rent Expense 956,224 Depreciation Expense: Equipment 321,588 Depreciation Expense: Building 459,887 Bad Debt Expense 896,338 Insurance Expense 1,100,365 Interest Expense 1,555,300 Income Tax Expense 4,800,525 Operating Profit: 18,397,451 Profit: 10,776,633 BALANCE SHEET Particulars Amount Assets Current Assets: 21,322,431 Cash 2,690,644 Accounts Receivable 5,890,887 Inventory 12,595,645 Prepaid Insurance 145,255 Non Current Assets: 29,715,924 Equipment 15,799,800 Accumulated Depreciation: Equipment -3,244,001 Building 18,560,325 Accumulated Depreciation: Building -5,655,225 Land 4,255,025 Total Assets: 51,038,355 Liabilities Current Liabilities: 11,194,411 Unearned Revenue 668,236 Accounts Payable 5,663,200 Salaries Payable 145,250 Interest Payable 67,500 Income Taxes Payable 4,650,225 Non Current Liabilities: 15,500,000 Long Term Loan @ 5% p.a. 15,500,000 Total Liabilities: 26,694,411 Equity Common Stock 280,000 Additional Paid In Capital 5,320,000 Retained Earnings 18,743,944 Total Equity: 24,343,944 Question 5 options: 0.42 0.81 0.93 0.65