Calculate the gross profit margin

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Reference no: EM133081359

Question - The balance sheet and income statement for Joe's Fish Hut are presented below:

Joe's Fish Hut Balance Sheet As at July 31

 

2019

2018

ASSETS

 

 

Current Assets

 

 

Cash

$191,702

$55,700

Accounts Receivable

$24,400

$16,900

Merchandise Inventory

$24,300

$29,500

Total Current Assets

$240,402

$102,100

Property, Plant & Equipment

$130,000

$198,000

Less: Accumulated Depreciation

$-28,200

$-21,300

TOTAL ASSETS

$342,202

$278,800

LIABILITIES AND EQUITY

 

 

Liabilities

 

 

Current Liabilities

 

 

Accounts Payable

$31,700

$41,000

Bank Loan-Current Portion

$6,300

$6,300

Total Current Liabilities

$38,000

$47,300

Bank Loan-Long-Term Portion

$71,000

$43,000

TOTAL LIABILITIES

$109,000

$90,300

Shareholders' Equity

 

 

Share Capital

$84,000

$56,100

Retained Earnings

$149,202

$132,400

TOTAL SHAREHOLDERS' EQUITY

$233,202

$188,500

TOTAL LIABILITIES AND EQUITY

$342,202

$278,800

 

Joe's Fish Hut Income Statement For the Year Ended July 31, 2019

Sales

$131,000

COGS

$85,200

Gross Profit

$45,800

Operating Expenses

 

Insurance Expense

$890

Rent Expense

$4,220

Salaries Expense

$5,680

Telephone Expense

$900

Interest Expense

$1,360

Depreciation Expense

$6,900

Total Operating Expenses

$19,950

Operating Profit Before Tax

$25,850

Income Tax Expense

$9,048

Net Profit (Loss)

$16,802

Required - Complete the following ratio analysis.

a) Calculate the gross profit margin for the 2019.

b) Calculate the net profit margin for 2019.

c) Calculate the return on equity for 2019.

d) Calculate the return on assets for 2019.

e) Calculate the asset turnover ratio for 2019.

Reference no: EM133081359

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