A company has the following balance sheet and income statement for 2013 (In $ thousands). Balance Sheet Income statement Cash 400 Net sales (All credit) 12,680 Account receivable 1,300 Cost of goods sold 8,930 Inventories 2,100 Gross profit 3,750 Current assets 3,800 Selling and administration expenses 2,230 Net fixed assets 3,320 Interest expenses 460 Total assets 7,120 Profit before taxes 1,060 Accounts Payable 320 Taxes 390 Accruals 260 Profit after taxes 670 Short term loans 1,100 Current liabilities 1,680 Long term debt 2,000 Net worth (Equity) 3,440 Total liabilities and net worth 7,120 Note: Current period’s depreciation is $ 480 and ending inventory for 2012 was $ 1,800 On the basis of above information compute and analyse your results a.Working capital ratio b. Quick acid ratio c. Debt to equity ratio
A company has the following
Balance Sheet
Income statement
Cash
400
Net sales (All credit)
12,680
1,300
Cost of goods sold
8,930
Inventories
2,100
Gross profit
3,750
Current assets
3,800
Selling and administration expenses
2,230
Net fixed assets
3,320
Interest expenses
460
Total assets
7,120
Profit before taxes
1,060
Accounts Payable
320
Taxes
390
Accruals
260
Profit after taxes
670
Short term loans
1,100
Current liabilities
1,680
Long term debt
2,000
Net worth (Equity)
3,440
Total liabilities and net worth
7,120
Note: Current period’s
On the basis of above information compute and analyse your results
a.Working capital ratio
b. Quick acid ratio
c. Debt to equity ratio
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