According to the information available in Income and Financial position statements (Image), calculate the following ratios for the business Competitors Average:- Net profit margin 31%- Gross profit margin 54%- Current ratio 2.87x- Acid test ratio 1.35x- Accounts receivable collection period 50 days- Accounts payable payment period 72 days Income StatementIncome StatementParticularsAmountAssets:AmountSalesLess: Cost of goods soldGross profitLess:RepairsWage expenseRent expenseBankCashAccounts receivableInventoryVanMotor vehicleLaptop3,9002,1001,8003,0807,120£££400£250£80£3,0002,5001,000£8201,000£Add:ТOTAL£17,350Rent received500Liabilities and Capital:Accounts payableCapitalAdd: Net incomeLess: DrawingsNet income4002,35016,200£4001,60017,350TOTAL£ Adjusted Trial balanceParticularsDebitCredit£ 3,080.00£ 7,120.00£ 3,000.00£ 2,500.00£ 1,000.00BankCashVanMotor vehicleLaptopCapital£16,200.00Accounts receivable400.00Accounts payable£ 2,350.00Purchases£ 2,450.00Sales£ 3,900.00Purchase return100.00Rent received500.00Repairs£80.00Wage expense820.00£ 1,000.00£ 1,600.00Rent expenseDrawingsTOTAL£23,050.00 £23,050.00

The management uses accounting ratios for evaluating the progress in operations as compared to prior…

According to the information available in Income and Financial position statements (Image), calculate the following ratios for the business Competitors Average: - Net profit margin 31% - Gross profit margin 54% - Current ratio 2.87x - Acid test ratio 1.35x - Accounts receivable collection period 50 days - Accounts payable payment period 72 days

According to the information available in Income and Financial position statements (Image), calculate the following ratios for the business Competitors Average: - Net profit margin 31% - Gross profit margin 54% - Current ratio 2.87x - Acid test ratio 1.35x - Accounts receivable collection period 50 days - Accounts payable payment period 72 days

College Accounting (Book Only): A Career Approach

12th Edition

ISBN:9781305084087

Author:Cathy J. Scott

Publisher:Cathy J. Scott

Chapter12: Financial Statements, Closing Entries, And Reversing Entries

Section: Chapter Questions

Problem 3E

See similar textbooks

Similar questions

Calculate the missing information for the purchase. Item SellingPrice(in $) SalesTaxRate SalesTax(in $) ExciseTax Rate ExciseTax TotalPurchase Price Book $ 8 $ 0 0 $19.44
K Which of the following is true of net sales revenue? OA It is calculated by adding sales discounts and sales retums and allowances to sales OB. It is calculated by deducting sales discounts and sales retums and allowances from sales OC. It is calculated by adding sales discounts to sales OD. It is calculated by subtracting cost of goods sold from sales MacBook Pro
Hh1. calculate net sales, cost of goods sold and gross profit from sales
For your convenience, the summary of transactions from the previous question is duplicated below. Sample Cafe Transactions Item 8,100 medium cups of coffee sold at $3.00 each 4,400 large cups of coffee sold at $4.00 each Espresso maker purchased last year for $12,000 $480 premium for business insurance $3,700 for rent $2,200 for coffee beans $1,600 for coffee cups $15,700 to employees for payroll $100 of interest on loan $1,000 for electricity and water $11,600 in advertising Includes 500 medium cups medium cups sold to the college and delivered to a reception that has been invoiced, but not yet paid. 5-year life Premium for full year Includes $2,100 in rent deposits. Includes coffee discarded valued at $100 Notes 0 cups in inventory at the beginning of January. $800 worth of cups still in inventory at the end of month. $2,500 owed in payroll taxes Paid mid-month Includes $600 in utility deposits $2,900 per week billed monthly Now use the transaction information to create a…
locs.google.com/forms/d/e/1FAlpQLSdhx7wkRBg-SysLm-AeX919m2L5F4)xzbwov4D68WUmofzSg/formResponse?pli=1 1. Gross profit margin is impacted by sales and cost of goods sold changes." O A) True O B) False 2. The income statement comes in only one basic formats, the multiple-step which is used to analyze the financial performance of the company. * O A) True O B) False 3. Gross profit margin and operating profit margin are complements of each other and the two percentages add up to 100%.* O A) True O B) False 9.58 AM Borrowing mone for short term period is a financingLcash outflow. O d0 ENG 22-Dec-2021 TOSHIBA
Options I have for denominator are - average accounts receivable, net average total assets cost of goods sold current assets current liabilities interest expense net sales
Conversion cost during the period? Cost of goods available for sales? Cost of goods sold? If the product was sold P80 per unit, how much was its unit cost? Inventory value that should be shown in the Statement of Financial Position of 08/31/21?
Identify each of the following items relating to sections of an income statement as Revenue from Sales (S), Cost of Goods Sold (CGS), Selling Expenses (SE), General Expenses (GE), Other Income (OI), or Other Expenses (OE). a. Utilities Expense b. Advertising Expense c. Purchases Discounts d. Sales Returns and Allowances e. Interest Income f. Freight In g. Depreciation Expense, Equipment h. Interest Expense i. Rent Expense j. Sales
Lopez Corporation incurred the following costs while manufacturing its product. Materials used in product Depreciation on plant Property taxes on store Labor costs of assembly-line workers Factory supplies used $121,000 61,000 7,600 111,000 24,000 Advertising expense Property taxes on plant Delivery expense Sales commissions Salaries paid to sales clerks $46,000 15,000 22,000 36,000 51,000 Work in process inventory was $13,000 at January 1 and $16,600 at December 31. Finished goods inventory was $61,000 at January 1 and $45,700 at December 31.
docs.google.com/forms choose the right answer Net profit is calculated in which of the following account? Trading account O Trial balance Profit and loss account C Balance sheet choose the right answer Goods returned by customer will be debited to which account? Return outward Purchases A/C O Return inward Customer's A/c O
(The given is in the photo.) Required: 1. SHOW THE COMPUTATION OF SM-X NET SALES REVENUE. COST OF GOODS SOLD AND GROSS PROFIT FOR THE YEAR ENDED DEC 31 2020
Hereunder are the nominal or temporary accounts of Lydia Merchandising on December 31, 2019. Sales P1800.000.00 40,000.00 12,000 00 Interest Income Gains Inventory, Beginning Purchases Freight In Purchase Returns and Alowances Purchase Diacounts Freight Out Sales Commission Advertising Expenses Salaries Expenses Rent Expenses Depreciation Epense Utilites Expenses Supplies Expense Transportation and Travel Expenses Insurance Taxes and Licenses Interest Expense Miscellaneous Expenses Loss on Sale o Equipment 75,000 00 480,000.00 9,000 00 12,000 00 9,000 00 32,000.00 60,000 00 30,000.00 320,000.00 36,000 00 50,000.00 30,000.00 12,000.00 10,000 00 12.000 00 48,000 00 5,000 00 12,000 00 6,000 00 Additional information: 1. Ending inventory is P90,000.00 2. One-fourth of the salaries, rent and depreciation are attributable to the non-sales department. The Sales Department does not share in the other expenses.