Computed the gross profit as percentage to sales ratios

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Reference no: EM131059036

ABC LTD PQR LTD - Ratios to be computed

BALANACE SHEET

As at Decemeber 31, 2011

 

ABC LTD

PQR LTD

FIXED ASSETS





Equipment at Cost

25,000


50,000


Less: Depreciation 

20,000

5,000

15,000

35,000

 





Curent Assets





Inventory

37,500


43,750


Accounts Receivable

62,500


50,000


Cash At Bank

12,500


6,250


 

1,12,500


1,00,000


Less: Current Liabilites

12,500

1,00,000

25,000

75,000

    Total Assets


1,05,000


1,10,000


Financed By





Capital B/f


95,000


90,000

Add: Net Profit


25,000


37,500

 


1,20,000


1,27,500

Less: Drawings


15,000


17,500

 


1,05,000


1,10,000

TRADING AND PROFIT & LOSS ACCOUNT
FOR THE YEAR ENDED DECEMBER 31, 2011

 

ABC LTD

PQR LTD

Sales Revenue


2,00,000


3,00,000

Less: Cost of goods sold





Opening Inventory

62,500


56,250


Add: Purchases

1,25,000


2,27,500


 

1,87,500


2,83,750


Less: Closing Inventory

37,500

1,50,000

43,750

2,40,000

Gross Profit


50,000


60,000

Less: Depreciation 

2,500


7,500


           Other expense

22,500

25,000

15,000

22,500

Net Profit


25,000


37,500

Ratios to be computed:
a. Gross Profit as percentage to sales
b. Net profit as percentage of sales
c. Expenses as percentage to sales
d. Current Ratio
e. Acid test ratio
f. Stock turnover ratio
g. Debtors (Accounts receivable) - sales ratio
h. Return (Net profit) on Capital employed
i. Net working capital
j. Net working capital to total assets ratio

Reference no: EM131059036

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