Liabilities & Stockholders Equity Accounts payable Notes Payable Аccruals 57, 000 49, 000 13, 000 5, 000 75, 000 150, 000 16, 000 6, 000 71, 000 160, 000 Total Current Liabilities Long Term Debt Shareholders Equity Com. stock Equity (share outstanding) Retained Earnings 110, 200 73, 100 183, 300 408, 300 120, 000 50, 200 170, 200 401, 200 Shareholders Equity Total Liabilities & S/holders Equity Calculate the following ratio for both years and comment on the comparison (use 365days) ; i. Current ratio ii. Acid ratio iii. Inventory turnover

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Liabilities & Stockholders Equity
Accounts payable
Notes Payable
Accruals
57, 000
13, 000
5, 000
75, 000
150, 000
49, 000
16, 000
6, 000
71, 000
160, 000
Total Current Liabilities
Long Term Debt
Shareholders Equity
Com. stock Equity (share outstanding)
Retained Earnings
110, 200
73, 100
183, 300
408, 300
120, 000
50, 200
170, 200
401, 200
Shareholders Equity
Total Liabilities & S/holders Equity
Calculate the following ratio for both years and comment on the comparison (use 365days) ;
i.
Current ratio
Acid ratio
Inventory turnover
Average collection period
Total Asset Turnover
ii.
ii.
iv.
V.
vi.
Debt ratio
Profit margin
viii. Earnings before Interest and Taxes
vii.
ix.
Return on Asset
х.
Return on Equity
Transcribed Image Text:Liabilities & Stockholders Equity Accounts payable Notes Payable Accruals 57, 000 13, 000 5, 000 75, 000 150, 000 49, 000 16, 000 6, 000 71, 000 160, 000 Total Current Liabilities Long Term Debt Shareholders Equity Com. stock Equity (share outstanding) Retained Earnings 110, 200 73, 100 183, 300 408, 300 120, 000 50, 200 170, 200 401, 200 Shareholders Equity Total Liabilities & S/holders Equity Calculate the following ratio for both years and comment on the comparison (use 365days) ; i. Current ratio Acid ratio Inventory turnover Average collection period Total Asset Turnover ii. ii. iv. V. vi. Debt ratio Profit margin viii. Earnings before Interest and Taxes vii. ix. Return on Asset х. Return on Equity
Income Statement for XYZ Ltd for year ending 2014
RM
Sales Revenue
600, 000
460, 000
140, 000
Less Cost of Goods sold
Gross Profit
Less Operating Expenses
General & Admin Expenses
Depreciation Expenses
30,000
30,000
60, 000
80, 000
10, 000
70, 000
27, 100
42, 000
Total Operating Expenses
Net profit before Interest and Taxes
Less Interest Expenses
Net profit before taxes
Less Taxes
Earning available for Common Shareholders
Balance Sheet of XYZ Ltd as at 31 Dec
2014
2013
RM
RM
Assets
15, 000
7, 200
34, 100
82, 000
138, 300
16, 000
8, 000
42, 200
50, 000
116, 200
Cash in hand
Marketable Securities
Accounts receivables
Inventories
Total Current Assets
Land and Building
Machinery & Equipment
Furniture & Fixtures
150, 000
200, 000
54, 000
11, 000
415, 000
145, 000
270, 000
408, 300
150, 000
190, 000
50, 000
10, 000
400, 000
115, 000
285, 000
401, 200
Others
Total Gross Fixed Assets
Less Accumulated Depreciation
Net Fixed Assets
Total Assets
Transcribed Image Text:Income Statement for XYZ Ltd for year ending 2014 RM Sales Revenue 600, 000 460, 000 140, 000 Less Cost of Goods sold Gross Profit Less Operating Expenses General & Admin Expenses Depreciation Expenses 30,000 30,000 60, 000 80, 000 10, 000 70, 000 27, 100 42, 000 Total Operating Expenses Net profit before Interest and Taxes Less Interest Expenses Net profit before taxes Less Taxes Earning available for Common Shareholders Balance Sheet of XYZ Ltd as at 31 Dec 2014 2013 RM RM Assets 15, 000 7, 200 34, 100 82, 000 138, 300 16, 000 8, 000 42, 200 50, 000 116, 200 Cash in hand Marketable Securities Accounts receivables Inventories Total Current Assets Land and Building Machinery & Equipment Furniture & Fixtures 150, 000 200, 000 54, 000 11, 000 415, 000 145, 000 270, 000 408, 300 150, 000 190, 000 50, 000 10, 000 400, 000 115, 000 285, 000 401, 200 Others Total Gross Fixed Assets Less Accumulated Depreciation Net Fixed Assets Total Assets
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