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With the accounts shown below, answer the following: Liquidity Ratios: What is the Current Ratio and Quick Ratio? What do they mean for the business
With the accounts shown below, answer the following:
Liquidity Ratios:
- What is the Current Ratio and Quick Ratio? What do they mean for the business in terms of liquidity and ability to pay off current liabilities?
- Is the business in a comfortable position in terms of liquidity, or are there any concerns?
2. Profitability Ratios:
- What is the Gross Profit Margin, Operating Profit Margin and Net Profit Margin? What do they indicate about the profitability of the business?
- Is the business generating profits or experiencing losses, and what is the magnitude of those profits/losses?
3. Efficiency Ratios:
- What is the Accounts Receivable Turnover Ratio and Inventory Turnover
- Ratio? What do they indicate about the efficiency offthe business in managing its assets?
- Are there any concerns about the efficiency of the business in managing its assets?
4. Solvency Ratios:
- What is the Debt-to-Equity Ratio and Interest Coverage Ratio? What do they indicate about the business's abilit to meet its longlterm obligations?
- Is the business in a comfortable position in terms of solvency, or are there
any concerns?
Write a short report on the comoans end of year status
Statement of Profit and Loss \begin{tabular}{|l|r|} \hline Sales & \multicolumn{1}{c|}{ Amount } \\ \hline Less: Operating Expenses: & 208,840.00 \\ \hline Salaries Expense & \\ \hline Rent Expense & 78,000.00 \\ \hline Insurance & 36,000.00 \\ \hline Internet and communication & 6,000.00 \\ \hline Utilities Expense & 6,000.00 \\ \hline Legal Expense & 3,000.00 \\ \hline Advertising Expense & 1,500.00 \\ \hline Travel expenses & 90,000.00 \\ \hline Bank charges & 18,000.00 \\ \hline Depreciation Expense & 300.00 \\ \hline Amortisation Expense & 1,500.00 \\ \hline Total Operating Expenses & 1,500.00 \\ \hline Operating income & 241,800.00 \\ \hline Interest Expense & (32,960.00) \\ \hline Income before taxes & 17,500.00 \\ \hline Income Taxes Expense & (50,460.00) \\ \hline Net Income & (50,460.00) \\ \hline \end{tabular} Balance Sheet Statement of Profit and Loss \begin{tabular}{|l|r|} \hline Sales & \multicolumn{1}{c|}{ Amount } \\ \hline Less: Operating Expenses: & 208,840.00 \\ \hline Salaries Expense & \\ \hline Rent Expense & 78,000.00 \\ \hline Insurance & 36,000.00 \\ \hline Internet and communication & 6,000.00 \\ \hline Utilities Expense & 6,000.00 \\ \hline Legal Expense & 3,000.00 \\ \hline Advertising Expense & 1,500.00 \\ \hline Travel expenses & 90,000.00 \\ \hline Bank charges & 18,000.00 \\ \hline Depreciation Expense & 300.00 \\ \hline Amortisation Expense & 1,500.00 \\ \hline Total Operating Expenses & 1,500.00 \\ \hline Operating income & 241,800.00 \\ \hline Interest Expense & (32,960.00) \\ \hline Income before taxes & 17,500.00 \\ \hline Income Taxes Expense & (50,460.00) \\ \hline Net Income & (50,460.00) \\ \hline \end{tabular} Balance Sheet
With the accounts shown below, answer the following:
Liquidity Ratios:
- What is the Current Ratio and Quick Ratio? What do they mean for the business in terms of liquidity and ability to pay off current liabilities?
- Is the business in a comfortable position in terms of liquidity, or are there any concerns?
2. Profitability Ratios:
- What is the Gross Profit Margin, Operating Profit Margin and Net Profit Margin? What do they indicate about the profitability of the business?
- Is the business generating profits or experiencing losses, and what is the magnitude of those profits/losses?
3. Efficiency Ratios:
- What is the Accounts Receivable Turnover Ratio and Inventory Turnover
- Ratio? What do they indicate about the efficiency offthe business in managing its assets?
- Are there any concerns about the efficiency of the business in managing its assets?
4. Solvency Ratios:
- What is the Debt-to-Equity Ratio and Interest Coverage Ratio? What do they indicate about the business's abilit to meet its longlterm obligations?
- Is the business in a comfortable position in terms of solvency, or are there
any concerns?
Write a short report on the comoans end of year status
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