Current ratio
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Free InquiryMorning star plc. is a manufacturer of computer accessories. The following are selected items appearing in the income statement and balance sheet for the year ended December 31st, 2015.
Income Statement |
|
Net Sales |
540,000 |
Less: Cost of Goods Sold |
324,000 |
Gross Profit |
216,000 |
Selling and general expenses |
154,800 |
Net Operating profit |
61,200 |
Interest expenses |
7,200 |
Net Profit before ta |
54,000 |
Income tax 35% |
16,200 |
Net profit for the year |
37,800 |
Balance Sheet |
|
Cash and short-term investments |
9,600 |
Receivables |
45,600 |
Inventories |
48,000 |
Property, plant & Equipment |
385,200 |
Total Assets |
360,000 |
Total current liabilities |
48,000 |
Total Non-current liabilities |
72,000 |
Shareholder’s Equity $10 par |
96,000 |
Retained Earnings |
144,000 |
Total Liabilities and Equity |
360,000 |
Required:
Using the information above, compute the Company’s ratio below and comment on each:
a. Current ratio
b. Asset Turnover
c. EPS
d. Interest cover
e. Gearing ratio EXCELLENT 100% CUSTOM ESSAY WRITING SERVICEGET YOUR QUALITY 100% CUSTOM RESEARCH PAPER TODAY
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