ABC Industry and Trade Inc. Income Statement dated 31.12.2020 (TL) transactions Gross sales Sales Discounts (-) Net Sales Cost of sales (-) GROSS SALES PROFIT OR LOSS Operating expenses (-) OPERATING PROFIT OR LOSS Ordinary Income and Profits from Other Operations Financial Expenses (-) ORDINARY PROFIT OR LOSS Extraordinary Expenses and Losses (-) PROFIT OR LOSS FOR THE PERIOD Period Profit, Tax and Legal Liability. Equivalent (-) NET PROFIT OR LOSS FOR THE PERIOD 31.12.2020 450.000 10.000 440.000 350.000 90.000 60.000 30.000 7.000 20.000 17.000 2.000 15.000 3.000 12.000 • Calculate the Current Ratio of the Business. • Calculate the Acid-Test Ratio of the facility. • Calculate the Business's Leverage Ratio (Total Debt Ratio) and briefly interpret the result.
ABC Industry and Trade Inc. Income Statement dated 31.12.2020 (TL) transactions Gross sales Sales Discounts (-) Net Sales Cost of sales (-) GROSS SALES PROFIT OR LOSS Operating expenses (-) OPERATING PROFIT OR LOSS Ordinary Income and Profits from Other Operations Financial Expenses (-) ORDINARY PROFIT OR LOSS Extraordinary Expenses and Losses (-) PROFIT OR LOSS FOR THE PERIOD Period Profit, Tax and Legal Liability. Equivalent (-) NET PROFIT OR LOSS FOR THE PERIOD 31.12.2020 450.000 10.000 440.000 350.000 90.000 60.000 30.000 7.000 20.000 17.000 2.000 15.000 3.000 12.000 • Calculate the Current Ratio of the Business. • Calculate the Acid-Test Ratio of the facility. • Calculate the Business's Leverage Ratio (Total Debt Ratio) and briefly interpret the result.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
Practice Pack
![ABC Industry and Trade Inc.
Income Statement dated 31.12.2020 (TL)
transactions
Gross sales
Sales Discounts (-)
Net Sales
Cost of sales (-)
GROSS SALES PROFIT OR LOS
Operating expenses (-)
OPERATING PROFIT OR LOSS
Ordinary Income and Profits from Other Operations
Financial Expenses (-)
ORDINARY PROFIT OR LOSS
Extraordinary Expenses and Losses (-)
PROFIT OR LOSS FOR THE PERIOD
Period Profit, Tax and Legal Liability. Equivalent (-)
NET PROFIT OR LOSS FOR THE PERIOD
31.12.2020
450.000
10.000
440.000
350.000
90.000
60.000
30.000
7.000
20.000
17.000
2.000
15.000
3.000
12.000
• Calculate the Current Ratio of the Business.
• Calculate the Acid-Test Ratio of the facility.
• Calculate the Business's Leverage Ratio (Total Debt Ratio) and briefly interpret the result.
• Calculate the Company's Equity Ratio.
• Calculate the Inventory Turnover Rate and the Average Consumption Time of Stocks.
• Calculate the Business's Receivable Turnover Rate and the Average Collection Time of Receivables.
• Calculate the Operating Profit Margin of the business.
• Calculate the Net Profit Margin of the business.
• Calculate the company's Return on Equity.
• Calculate the Profitability of Assets of the Business.
Interpret the ratios in the table below from the ratios you calculated, taking into account the sector
averages of the relevant ratios.
RATE NAME
SECTOR AVERAGE
Current rate
1,56
Leverage Ratio
0,62
Receivable Turnover Rate
12
Average
Collection
Time
of
30,41 day
Receivables
Net Profit Margin
0,04
0,15
Equity Profitability](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff5aaf28b-b7b7-4137-8c01-dcc724a94c00%2F578905dd-dced-4435-a094-a948356e961a%2Fdproqe9_processed.png&w=3840&q=75)
Transcribed Image Text:ABC Industry and Trade Inc.
Income Statement dated 31.12.2020 (TL)
transactions
Gross sales
Sales Discounts (-)
Net Sales
Cost of sales (-)
GROSS SALES PROFIT OR LOS
Operating expenses (-)
OPERATING PROFIT OR LOSS
Ordinary Income and Profits from Other Operations
Financial Expenses (-)
ORDINARY PROFIT OR LOSS
Extraordinary Expenses and Losses (-)
PROFIT OR LOSS FOR THE PERIOD
Period Profit, Tax and Legal Liability. Equivalent (-)
NET PROFIT OR LOSS FOR THE PERIOD
31.12.2020
450.000
10.000
440.000
350.000
90.000
60.000
30.000
7.000
20.000
17.000
2.000
15.000
3.000
12.000
• Calculate the Current Ratio of the Business.
• Calculate the Acid-Test Ratio of the facility.
• Calculate the Business's Leverage Ratio (Total Debt Ratio) and briefly interpret the result.
• Calculate the Company's Equity Ratio.
• Calculate the Inventory Turnover Rate and the Average Consumption Time of Stocks.
• Calculate the Business's Receivable Turnover Rate and the Average Collection Time of Receivables.
• Calculate the Operating Profit Margin of the business.
• Calculate the Net Profit Margin of the business.
• Calculate the company's Return on Equity.
• Calculate the Profitability of Assets of the Business.
Interpret the ratios in the table below from the ratios you calculated, taking into account the sector
averages of the relevant ratios.
RATE NAME
SECTOR AVERAGE
Current rate
1,56
Leverage Ratio
0,62
Receivable Turnover Rate
12
Average
Collection
Time
of
30,41 day
Receivables
Net Profit Margin
0,04
0,15
Equity Profitability
![QUESTION 3: Make the following analyzes using the financial statements of ABC Company dated
31.12.2020.
ABC Industry and Trade Inc.
Balance Sheet as of 31.12.2020 (TL)
transactions
CURRENT ASSETS
Ready Values
Securities
Commercial debts
Stocks
For Future Years. Outgoing. And Incoming. tach.
FIXED ASSETS
Financial Fixed Assets
Tangible Fixed Assets
Intangible Assets
TOTAL ASSETS
SHORT TERM LIABILITIES
Financial Debts
Trade payables
Advances Received
Debt and Expense Provisions
LONG-TERM LIABILITIES
Financial Debts
TOTAL FOREIGN RESOURCES
equity capital
Paid-in capital
Profit and Capital Reserves
Net profit for the period
TOTAL RESOURCES
31.12.2020
110.000
10.000
30.000
25.000
40.000
5.000
140.000
50.000
80.000
10.000
250.000
62.000
30.000
20.000
8.000
4.000
67.000
67.000
129.000
121.000
80.000
29.000
12.000
250.000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff5aaf28b-b7b7-4137-8c01-dcc724a94c00%2F578905dd-dced-4435-a094-a948356e961a%2Frxrnunf_processed.png&w=3840&q=75)
Transcribed Image Text:QUESTION 3: Make the following analyzes using the financial statements of ABC Company dated
31.12.2020.
ABC Industry and Trade Inc.
Balance Sheet as of 31.12.2020 (TL)
transactions
CURRENT ASSETS
Ready Values
Securities
Commercial debts
Stocks
For Future Years. Outgoing. And Incoming. tach.
FIXED ASSETS
Financial Fixed Assets
Tangible Fixed Assets
Intangible Assets
TOTAL ASSETS
SHORT TERM LIABILITIES
Financial Debts
Trade payables
Advances Received
Debt and Expense Provisions
LONG-TERM LIABILITIES
Financial Debts
TOTAL FOREIGN RESOURCES
equity capital
Paid-in capital
Profit and Capital Reserves
Net profit for the period
TOTAL RESOURCES
31.12.2020
110.000
10.000
30.000
25.000
40.000
5.000
140.000
50.000
80.000
10.000
250.000
62.000
30.000
20.000
8.000
4.000
67.000
67.000
129.000
121.000
80.000
29.000
12.000
250.000
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