Reference no: EM132913964
Icy Co. is a manufacturer of ice cream machines accessories. The following are selected items appearing in the income statement and balance sheet for the year ended December 31st, 2017.
Income Statement
Net Sales 675,000
Less: Cost of Goods Sold 405,000
Gross Profit 270,000
Selling and general expenses 193,500
Net Operating profit 76,500
Interest expenses 9,000
Net Profit before ta 67,500
Income tax 35% 20,250
Net profit for the year 47,250
Balance Sheet
Cash and short-term investments 12,000
Receivables 57,000
Inventories 60,000
Property, plant & Equipment 321,000
Total Assets 450,000
Total current liabilities 60,000
Total Non-current liabilities 90,000
Shareholder's Equity $10 par 120,000
Retained Earnings 180,000
Total Liabilities and Equity 450,000
Required:
Problem a: Using the information above, compute the Company's ratio below and comment on each:
1. Current ratio
2. Asset Turnover
3. EPS
4. Interest cover
5. Gearing ratio