Reference no: EM132995852

Question - 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 tax 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 - 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